# Optimal Output Calculation

Supposing the demand for a gas station is given as PD = 2.06 - .00025QD. The marginal cost is $1.31 per gallon. At his current $1.69 price, he sells 1,500 gallons per week. Is this price-output combination optimal?

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#### Solution Preview

It should be - if PD is price demanded = 2.06 - .00025* Quantity ...

#### Solution Summary

This solution explains how the calculate the optimal price output combination.

$2.19