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Estimate of the demand function for output

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Reference no: EM132498136

The manager of a monopoly firm obtained the following estimate of the demand function for its output:

Q = 3,000 - 100P + 0.25M +36PR

From an econometric forecasting firm, the manager obtained forecasts for the 2018 values of M and PR as, respectively, $50,000 and $2.50.

The manager also estimated the average variable cost function as

AVC = 10.10 - 0.07Q + 0.0002Q2

where AVC was measured in dollars per unit and Q is the number of units sold.

The optimal level of production in 2018 is _____ units.

Reference no: EM132498136

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