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Compute the firm total profit

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Firm S is the only producer of a particular type of foam fire retardant and insulation used in the construction of commercial buildings. The inverse demand equation for the product is P = 1,500 - .1Q, where Q is the annual sales quantity in tons and P is the price per ton. The firm's total cost function (in dollars) is C = 1,400,000 + 300Q + .05Q2:

a. To maximize profit, how much foam insulation should firm S plan to produce and sell? What price should it charge?

b. Compute the firm's total profit.

Reference no: EM13880761

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