A)Peter, the owner, makes the same offer to the manager at each of his stores: "At the end of the year, give me $250,000 and you can keep any additional profit." Ann, a manager at one of the stores, gladly agrees, knowing that the total profit at the store will substantially exceed $250,000 if it is well run. If she is interested in maximizing her earnings, will Ann act in a manner that maximizes the store's total profit?

B) A firms demand function for a good is given by P = 214 - 4Q and their total cost function is given by TC = 400 + 6Q.

Obtain an expression for total revenue profit in terms of Q.

What output level maximizes its profit?