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Demand function for a firm is given byP=12 - 0.4QP is the price of the product, Q is the quantity demanded, and the total cost (C) is given byC = 5 + 4Q + 0.6Q2At what price and quantity will the firm have maximum profit? If the firm aims at maximizing sales, whatprice should it charge?
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A company is selling an item for ps= Sh.5. Profit is related to selling price p byP=50000ps - 6250ps2i ) Is the profit an increasing function or a decreasing function when ps = 5?ii) If the price is changed to Sh.4.75, find whether profit would increase or decrease and find the change inprofit.iii) At what price is the profit maximized?
Date posted: December 6, 2018 . Answers (1)