Martin s Enterprise has been experiencing difficulties with respect to the competitiveness of the price that it
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Question:
Martins Enterprise has been experiencing difficulties with respect to the competitiveness of the price that it charges to consumers. In January a market research team used demand and supply information to arrive at the following demand and cost functions:
PQ; where P is the unit selling price and Q is the quantity of units in thousands.
TCQQ ; where TC is total costs in thousands of dollars.
Required:
a Determine the output level that would maximize profits for Martins Enterprise.
b Compute the optimal price that Martins Enterprise should charge in order to maximize profit.
c Calculate the optimal sales revenue that would maximize profits.
d How much profit would Martins Enterprise make in January
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