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Nigel Evans has determined that demand for his custom clocks is given by Q = 300...

Nigel Evans has determined that demand for his custom clocks is given by Q = 300 - 4P and a cost equation given by C = 400 + 7Q.

a. Determine the optimal price and quantity for the firm. (Price should be calculated to nearest cent. Example: $5.43 should not be rounded to $5.00.)

b. Suppose that costs change to C = 300 + 12Q. Determine the new optimal price and quantity. Explain why the results differ from those in part a.

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