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    Finding the optimal price and output level

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    The demand curve for tickets at an amusement park is:

    Q = D(p) = 1400 - 46p, p > 0

    The marginal cost of serving a customer is $11.

    Using calculus and formulas (but no tables or spreadsheets) to find a solution, how many tickets will be sold at the profit-maximizing price?

    Round the equilibrium quantity DOWN to its integer part and round the equilibrium price to the nearest cent.

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    Solution Preview

    Q=1400-46p, p>0
    On rearranging we get
    Total ...

    Solution Summary

    Solution depicts the steps to find out the optimal price and output level in the given case.