\[R = PQ = P(100 - 2P) = 100P - 2P^2\]
\[MR = 100 - 4P = 0\]
Managerial economics is a branch of economics that deals with the application of economic principles to business decision-making. It involves the use of economic theories and models to analyze business problems and make informed decisions. Managerial economics draws on a range of disciplines, including economics, finance, accounting, and marketing.
where \(Q\) is the quantity produced.
To maximize revenue, the company sets the marginal revenue equal to zero:
\[NPV = -100,000 + rac{20,000}{1+r} + rac{20,000}{(1+r)^2} + ... + rac{20,000}{(1+r)^5}\]