Question

Commercial Recording, Inc., is a manufacturer and distributor of reel-to-reel recording decks for commercial recording studios. Demand and cost relations are:

P= 3,000 - 0.5Q TC = $100,000 + $1,500Q + $0.1Q²

b) What is your Profit (π=TR-TC) function?

d) Using the profit function in part “b,” calculate quantity, price, and profit at the profit-maximizing activity level. Prove that “Q” maximizes profit.

(SHOW ALL WORK PLEASE!)

Answer 1