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The demand for product Q is given by Q = 385 - P and the total cost of Q by STC = 3000 + 40Q -5Q 2 + 1/3Q 2 a. Find the price function and then the...

The demand for product Q is given by Q = 385 - P and the total cost of Q by

STC = 3000 + 40Q -5Q2 + 1/3Q2

a.   Find the price function and then the TR function. See Assignment 3 or 4 for an example.

b.   Write the MR and MC functions below. Remember: MR = dTR/dQ and MC = dSTC/DQ. See Assignment 5 for a review of derivatives.

c.   What positive value of Q will maximize total profit?  Remember, letting MR = MC signals the objective of total profit maximization.  Solve MR = MC for Q. The value of Q you get should not be zero or negative.

d.   Use the price function found in (a) to determine the price per unit that will need to be charged at the Q found in (c). This will be the price you should ask for the total profit maximizing quantity.

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Price function and TR function P = 385 - Q TR = 385Q -... View the full answer

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a) Price function is P=385-Q TR... View the full answer

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