The firms objective is to maximize total revenue. To maximize total revenue
1. What quantity should it see in the residential market and the commercial?
2. What price should it charge in the residential market?
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RESIDENTIAL MARKET
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OVERALL
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PRICE (P(R))
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$40.19
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P(R) - P(C)
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$32.72
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QUANTITY (Q(R))
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1500
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MR(R)-MR(C)
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$6.85
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MR(R)
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$11.17
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Q(R)+Q(C)
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3,000
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TR(R)
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$60,286
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TR(R)+TR(C)
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$71,497
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COMMERCIAL MARKET
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PRICE (P(C))
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$7.47
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QUANTITY (Q(C))
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1500
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MR(C)
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$4.32
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TR(C)
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$11,211
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