# optimal profit and return

Not what you're looking for?

QPL offers mail-order storage containers for fine china. The co is the low cost provider of these quilted boxes with fixed costs of $480000per year, plus variable costs of $30per box. Annual demand and marginal revenue relations for the co. are:

P=$70 - $0.0005; MR=dTR/dQ = $70-$0.001Q

A. Calculate the profit maximizing aactivity level.

B.Calculate the co.'s optimal profit and return on sales levels.

please show steps.

##### Purchase this Solution

##### Solution Summary

The expert calculates the optimal profit and return on sales levels.

##### Solution Preview

I doubt if the demand function should be P=$70 - 0.0005Q

Then MR= 70-0.001Q

We write total cost function:

TC=Fixed ...

##### Purchase this Solution

##### Free BrainMass Quizzes

##### Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

##### Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

##### Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

##### Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

##### Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.