Where P is price (in dollars), TC is total cost (in dollars), and Q is monthly output
a. To maximize profit, how many lasers should the firm produce and sell per month?
b. If this number were produced and sold, what would be the firm's monthly profit?
c. Is demand elastic, inelastic or unit elastic at the profit maximizing price - quantity
d. What is the excess of price over the marginal cost at the profit maximizing price-
(a) Profit, PR = Revenue - Cost = QP - TC = [Q(8300 - Q)/2.1] - (2200 + 480Q + 20Q^2)
= 3952.38Q - 0.4762Q^2 - 2200 - 480Q - 20Q^2 = -20.4762Q^2 + 3472.38Q - ...
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