Profit maximizing number of vending machines

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Reference no: EM133629764

Question

Sweet Tooth Inc manufactures and sells candy vending machines. The cost of producing vending machines is given by C(Q) = 750Q .125Q2 where Q is measured in machines. Sweet Tooth sells its machines in a perfectly competitive market where the price of a machine is $1000.

What is the profit maximizing number of vending machines? What are Sweet Tooths profits at this quantity? Illustrate the producer surplus of Sweet Tooth at the profit maximizing level of output.

Reference no: EM133629764

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