A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250, he can produce the cheese at a cost of $9 per kilogram. He is able to produce up to 400kg,but he plans to take advance orders and produce only what he can sell. His market research suggests that the amount he would be able to sell depends on the price in the following way: the mount decreases proportionally with the price; if he charged $20 per kg he would not sell any, and if the cheese was free he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his profit?
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250, he can produce the cheese at a cost of $9 per kilogram. He is able to produce up to 400kg,but he plans to take advance orders and produce only what he can sell. His market research suggests that the amount he would be able to sell depends on the price in the following way: the mount decreases proportionally with the price; if he charged $20 per kg he would not sell any, and if the cheese was free he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his profit?
I have one doubt. You said that marginal revenue can be negative if we have inelastic demand. Suppose we have perfectly inelastic demand and know if we charge more price for the same thing people have to buy that product because they don't have any other way out. So how come it leads to negative margin revenue in case of perfectly inelastic??
It is clear and creative. I watched it over and over and wish to watch more of it
Thanks for the great vid, it's very clear and easy to follow. I also like your shirt :)
I found this video very informative and clear. Thank you.
very good and informative video abt economics
very clear and excellent teaching. Thank you
Awesome Video, Thanks for Helping Me
helpful and educating, keep up the good work..
I couldn't focus ;) so I had to watch the video all the way back over and then I got it
Thanks Jodie - the intricacy helps.
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250,
he can produce the cheese at a cost of $9 per kilogram. He is able to
produce up to 400kg,but he plans to take advance orders and
produce only what he can sell. His market research suggests that the
amount he would be able to sell depends on the price in the following
way: the mount decreases proportionally with the price; if he
charged $20 per kg he would not sell any, and if the cheese was free
he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his
profit?
NICE VIDEO
@famousto0 No. It's better to sell 10 at $1.90 because (assuming there are no costs to selling the extra apple) at this P x Q profit is higher.
Excellent . Thanks dear teacher.
A Mr. Peterson wants to sell cheese. After a fixed set-up cost of $250,
he can produce the cheese at a cost of $9 per kilogram. He is able to
produce up to 400kg,but he plans to take advance orders and
produce only what he can sell. His market research suggests that the
amount he would be able to sell depends on the price in the following
way: the mount decreases proportionally with the price; if he
charged $20 per kg he would not sell any, and if the cheese was free
he would ‘sell’ the maximum 400kg that he could produce. What price per kilogram should the farmer set in order to maximize his
profit?
I have one doubt. You said that marginal revenue can be negative if we have inelastic demand. Suppose we have perfectly inelastic demand and know if we charge more price for the same thing people have to buy that product because they don't have any other way out. So how come it leads to negative margin revenue in case of perfectly inelastic??
please mark your decimal points darker, awesome explanation though
More cowbell!
IB life
okay Now imma not pay attention in da class ... thanks for the the tutorial
Those are some expensive apples and oranges haha
You need to smile more... Some animation in the facial muscles could significantly boost the appeal of your videos...
what if students's algebra is POOR ?
you look pretty before than now :(
not as interesting as kahn academy...these videos are too serious.
God damn some of these comments are slimy
You want a better job than whatever you have now? Seriously.
This is basic math. If you're bothered by this, then I don't know how you're going to make it through college.