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Suppose the cost of producing q unit is c(q)=500-4q+q2 and the demand function is given by...

Suppose the cost of producing q unit is c(q)=500-4q+q2 and the demand function is given by p=14-2q

A) Develop the total revenue, total cost (if not given), and profit functions. Explain these functions in few sentences.

B) Compute the point elasticity of demand.

C) Find the intervals where the demand is inelastic, elastic, and the price for which the demand is unit elastic.

D) Find the quantity that maximizes the total revenue and the corresponding price. Interpret your result.

E) Find the quantity that minimizes the average cost function and the corresponding price. Interpret your results.

F) What are the quantity and the price that maximize the profit? What is the maximum profit? Interpret your result.

G) Discuss the results of D, E and F.

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