Woodland Instruments, Inc. operates in the highly competitive electronics industry. Prices for its R2-D2 control switches are stable at $100 each. This means that P = MR = $100 in this market. Engineering estimates indicate that relevant total and marginal cost relations for the R2-D2 model are:
TC = $500,000 + $25Q + $0.0025Q2
A. Calculate the output level that will maximize R2-D2 profit.
B. Calculate this maximum profit.