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Economics : Equations, Quantity and Profit
A company manufacturers and sells a product. The estimated demand and cost functions are as below:
Demand P = 16000 -2Q(squared) 0< Q < 85
Total cost 1000q = 100000
Where p is unit price (in £'s) q is quantity, tc is total cost (in £'s)
A) Find the equation for total revenue hence an equation for profit.
B) Find the quantity that will maximize profit.
C) Calculate the maximum profit.
D) Find the quantity that will maximize total revenue. Compare your answer to part b and comment.
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