Math Problem Statement
The Demand and profit functions are the same as in the previous question (Question 2a):
Demand: P=20-2Q
Total cost function: TC=100-2Q3-100Q+34Q2
Once you find the profit-maximizing level of output (in question 2a), what price should you charge for your product?
Solution
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Math Problem Analysis
Mathematical Concepts
Demand Function
Profit Maximization
Cost Functions
Optimization
Formulas
Demand function: P = 20 - 2Q
Total cost function: TC = 100 - 2Q^3 - 100Q + 34Q^2
Profit maximization: MR = MC
Theorems
Profit maximization occurs where marginal revenue equals marginal cost (MR = MC)
Suitable Grade Level
Undergraduate Economics or Business Courses
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