A firms demand function is Q 110 p 2A 0 5 , where A is the amount of advertising undertaken by the firm and the price of advertising is one The firms cost of production is C 50 10Q 2Q 2 The government imposes a binding price control at $135 Use Excel to determine the profit maximizing level of advertising What is the quantity sold

Question: A firms demand function is Q = 110 p + 2A 0.5 , where A is the amount of advertising undertaken by the firm

A firm’s demand function is Q = 110 − p + 2A^0.5, where A is the amount of advertising undertaken by the firm and the price of advertising is one. The firm’s cost of production is C = 50 + 10Q + 2Q². The government imposes a binding price control at $135. Use Excel to determine the profit-maximizing level of advertising. What is the quantity sold?

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