Find the firms profit-maximizing price and output

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Suppose the manufacturer of running shoes has collected the following quantitative information. Demand for the boys’ shoe is estimated to be Q 9,600 200P, or, equivalently, P 48 Q/200. The shoe’s direct cost is C $60,000 .0025Q2.

a. Check that these demand and cost equations are consistent with the data presented in the “Allocating Costs Revisited” section.

b. Find the firm’s profit-maximizing price and output.

Reference no: EM131236925

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