# Finding the optimal price and output levels

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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#### 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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