Purchase Solution

Finding the optimal price and output levels

Not what you're looking for?

Ask Custom Question

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?

Purchase this Solution

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.

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 provided by:
Education
  • BEng (Hons) , Birla Institute of Technology and Science, India
  • MSc (Hons) , Birla Institute of Technology and Science, India
Recent Feedback
  • "Thank you"
  • "Really great step by step solution"
  • "I had tried another service before Brain Mass and they pale in comparison. This was perfect."
  • "Thanks Again! This is totally a great service!"
  • "Thank you so much for your help!"
Purchase this Solution


Free BrainMass Quizzes
Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Basic Social Media Concepts

The quiz will test your knowledge on basic social media concepts.

Operations Management

This quiz tests a student's knowledge about Operations Management

Situational Leadership

This quiz will help you better understand Situational Leadership and its theories.

Motivation

This tests some key elements of major motivation theories.