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    Finding the optimal price and output levels

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    Currently the total cost is given by TC = 100 + 10Q +Q^2 for sale shoe manufacturing company. The demand equation is given by P =-5Q +130. How many units should the company produce to maximize its profit? What is the price that company charges? What are the profit, total revenues, and total cost of the company?

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    https://brainmass.com/business/management-accounting/finding-optimal-output-price-level-440463

    Solution Preview

    Total Cost=TC=100+10Q+Q^2
    Marginal Cost=MC=dTC/dQ=10+2Q

    P=-5Q+130
    Total Revenue=TR=P*Q=(-5Q+130)*Q=-5Q^2+130Q
    Marginal ...

    Solution Summary

    Solution describes the steps to calculate optimal output and price level in the given case. It also calculates total cost, total revenue and total profit at that level.

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