SpaceX developed the Falcon 9 rocket, the first orbital class rocket capable of re-use. Development of the Falcon 9 was driven by the escalating demand for reliable and cost-effective launches of satellites and other payloads into space. Because the Falcon 9 is reusable, customers can use the Falcon 9 to put satellites into orbit for a fraction of the current price for satellite launches. Assume that this dramatic difference in pricing (as a result of lower costs) means that SpaceX effectively operates as a monopolist in the satellite launch business.

Costs for Falcon 9 satellite launches are as follows (in millions):

• One time development costs and long-term lease on launchpad use: $64
• Fuel and actual rocket ship costs:q + 4(q^2), whereqis the number of launches.

a)Write the total cost function for Falcon 9 launches, in millions

b)What is the average total cost per launch, for anyq?

c)At what number of launches does SpaceX exhaust economies of scale for Falcon 9?Verifyyour answer.

d) Through market research, SpaceX has estimated demand for satellite launches to be as follows:

P = 28 - (q/2)

where P = the price of a launch, in millions, and q is number of launches.

What is the profit maximizingnumberof launches?

What is the profit maximizingpriceof these launches?