Question: The demand and cost function for a company are estimated to be as follows: P=1008QTC=50+80Q10Q2+0.6Q3 a. What price should the company charge if it wants

The demand and cost function for a company are estimated to be as follows:

P=1008QTC=50+80Q10Q2+0.6Q3 a. What price should the company charge if it wants to

maximize its profit in the short run? b. What price should it charge if it wants to maximize its

revenue in the short run? c. Suppose the company lacks confidence in the accuracy of cost

estimates expressed in a cubic equation and simply wants to use a linear approximation. Suggest

a linear representation of this cubic equation. What difference would it make on the

recommended profit-maximizing and revenue-maximizing prices?

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