Question: The demand and total cost functions for a good are given by the equations: P = 152.5 - 3Q TC = =Q3 -1502 + 175Q

The demand and total cost functions for a good are given by the equations: P = 152.5 - 3Q TC = =Q3 -1502 + 175Q + 300 (a) Write down and simplify equations for: (i) total revenue (1 mark) (ii) profit (2 marks) (b) Determine the level of output which maximises profit. Calculate this profit. (4 marks) (c) Find the price elasticity of demand when the output is at the level that gives the maximum profit and comment on your result

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