So dTRdP 0 26269084 27324P 0 P 96139 Putting the value of P in Eq iii we get

So dtrdp 0 26269084 27324p 0 p 96139 putting the

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So, d(TR)/d(P) =0 26269.084 273.24P = 0 P = 96.139 Putting the value of P in Eq (iii) we get the Total Revenue TR = 26269.084 *96.139136.62*96.139*96.139 TR = 1268475.277 So, the Total Revenue TR is 1268475.277 is maximum when optimum Price P is 96.139 If competitors increase their prices its shows that the increase in the Total revenue (TR), price and demand of Hind Maa Oil also increases because when increase the prices of their competitor’sproduct then substitute oil will be preferred demand will also increase. Question5): Plot a demand curve and a total revenue using the estimated values of quantity demanded from question 4. Analyze the findings of Question 4 by using the concept of the total revenue test and the plotted graphs.
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Demand and Total Revenue Curve for above data sets: (i) Demand Curve: - (II) Total Revenue Curve 0 2000 4000 6000 8000 10000 12000 14000 16000 80 85 90 95 100 105 Quantity demanded Vs price
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Case 2: If the competitors’ prices increase in october2015 by 6 % Price (P) Quantity demanded (Qmaa2) Total Revenue 2 85.43 14597.6379 1247076.249 86.98 14385.8769 1251283.616 87.48 14317.5669 1252500.796 88.48 14180.9469 1254730.226 89.58 14030.6649 1256867.007 90.99 13838.0307 1259122.459 91.48 13771.0869 1259779.075 92.48 13634.4669 1260915.545 93.334 13517.79342 1261669.778 95.48 13224.6069 1262685.515 96.5 13085.2545 1262727.108 97.5 12948.6345 1262491.913 99.48 12678.1269 1261220.114 100.48 12541.5069 1260170.664 102.35 12286.0275 1257474.966 1178000 1180000 1182000 1184000 1186000 1188000 1190000 1192000 0 2000 4000 6000 8000 10000 12000 14000 16000 Total Revenue Vs Demand
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12000 12500 13000 13500 14000 14500 15000 80 85 90 95 100 105 Quantity demanded (Qmaa2)Vs Price 1246000 1248000 1250000 1252000 1254000 1256000 1258000 1260000 1262000 1264000 12000 12500 13000 13500 14000 14500 15000 Total Revenue 2 vs Demand
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Consolidated Analysis: - As shown in last Demand Vs Price curve that price increases in graph then Demand decreases as per the law of demand. With increase in price the demand will shift towards the right. 0 2000 4000 6000 8000 10000 12000 14000 16000 80 85 90 95 100 105 Quantity Demand Vs Price Quantity demanded (Qmaa2) Quantity demanded (Qmaa1)
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1170000 1180000 1190000 1200000 1210000 1220000 1230000 1240000 1250000 1260000 1270000 0 2000 4000 6000 8000 10000 12000 14000 16000 Total Revenue Vs Demand Series1 Series2
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