Determine the optimal price and quantity for the firm

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Rex Hofer has determined that demand for his product is given by Q = 180 - 5P and a cost equation given by C = 75 + .3Q.

a. Determine the optimal price and quantity for the firm.

b. Suppose that costs change to C = 25 + .4Q. Determine the new optimal price and quantity. Explain why the results differ from those in part a.

Reference no: EM13796427

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