As a consultant, you have been asked to develop cost functions that will assist in arriving at the optimal price that will enable the company to maximize profits. 

During the year, you were provided with the following demand and costs functions for the product: P = 485-25Q, where P is the unit selling price and Q is quantity of units in thousands. TC = 5Q2 + 95Q + 220, where TC is total costs in thousands of dollars.

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To maximize profits we need to find the quantity that maximizes revenue and subtract the correspo... View the full answer