What are profit maximizing output and price

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Assume that you are the manager of a firm that operates in a monopolistically competitive industry. You hired an economist to estimate the demand and cost equations of your company to verify if you have been maximizing profit by producing the profit maximizing output and charging the profit maximizing price. The following are the demand and total cost equations the economist has estimated for you. 

P = 600 - 20Q 

C(Q) = 700 + 160Q + 15Q2

a. What are your profit maximizing output and price?

b. How much profit do you make?

Reference no: EM132072157

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