Optimal Price Calculator

Linear demand Q=a-bP, constant marginal cost and continuous quantities. Excludes capacity limits and real-market estimation.

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Result

Enter your values and run the tool to see your result.

Check the units, enter your values, and run the tool. Results follow the assumptions and method below.

Profit maximizing price(intercept+slope*cost)/(2*slope)

Optimal quantity(intercept-slope*cost)/2

Maximum model profit(intercept-slope*cost)^2/(4*slope)-fixed