Determine the profit maximizing price and output

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QopyQatt specializes in printing business cards and résumé's, using the latest laser technology. After analysis of the business, the manager has determined that weekly demand can be approximated by Q = 25,000 - 1000P. The firm's cost function is C = 25,000 + 13Q + .002Q2, where Q is output per week.

a. Determine the profit maximizing price and output.

b. A former employee decides to sue QopyQatt, alleging employment discrimination. Although management claims innocence, they agree to settle out of court. The settlement requires QopyQatt to pay the employee $10,000 per month for the next year. Determine the optimal price and output for the shop under these new conditions

Reference no: EM13245209

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