Tag Archives: semilog demand

Maximizing profits when demand is known

Maximizing Profits When Demand is Semi-Log We want to maximize profits, or (P-MC)*Q. Our demand function is given as ln(Q) = aP + b. To get Q from ln(Q), we use the exponential function (since e^ln(x) = x): e^lnQ = e^(aP+b) … Continue reading

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