# The Zinger Company: Total Profit at Optimal Level

The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q) for a particular model is given by the following relationship:

Q = 400 - .5P

where P is price. Total costs (including a "normal" return to the owners) of producing Q units per period are:

TC = 20,000 + 50Q + 3Q2. What are total profits at the optimum level of output for Zinger Company?

a. $81,250

b. $812.50

c. $8,125

d. $812,500

© BrainMass Inc. brainmass.com October 9, 2019, 6:06 pm ad1c9bdddfhttps://brainmass.com/economics/pricing-output-decisions/the-zinger-company-total-profit-at-optimal-level-78524

#### Solution Preview

Q = 400-0.5P, rearranging this equation in terms of Q we get

P = 800 - 2Q

TR = P*Q

TR = 800Q - 2Q2

Marginal revenue is the first ...

#### Solution Summary

Solution contains answer and explanation of a MCQ.

$2.19