B. At what output level is revenue maximized?
2. PROFIT MAXIMIZATION: EQUATIONS. Woodlands instruments Inc. operates in the highly competitive electronics industry. Prices for its R2-D2 control switches arer stablel at $100 each. This means that P=MR=$100in the market. Engineering estmates indicate that relevent total and marginal cost relations for the R2-D2 model are:
TC=500,000 + 25Q + $0.0025Qsquared
MC=(like a dislexic 6) TC/(backwards 6)q=$25+$0.05Q
A. Calculate the output level that will mazimiize R2-D2 profit
B. Calculate the maximum profit