Explore BrainMass

Explore BrainMass

    Finding the optimal price and output levels

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    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?

    © BrainMass Inc. brainmass.com October 10, 2019, 3:54 am ad1c9bdddf

    Solution Preview

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

    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.