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.© BrainMass Inc. brainmass.com March 7, 2023, 5:36 pm ad1c9bdddf
On rearranging we get
Solution depicts the steps to find out the optimal price and output level in the given case.