Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function 4? = 35 − 0.5?. If total fixed cost is GH¢80 and average variable cost per unit function is 3? −51+325/Q , where Q is number of tooth paste produced and P is the price per tooth paste (in GH¢). What is the total profit at the profit maximizing level of output, and what is the best pricing policy option?
Dalahla Company Limited, focusing on producing tooth paste (in units) has a demand function 4? = 35 − 0.5?. If total fixed cost is GH¢80 and average variable cost per unit function is 3? −51+325/Q , where Q is number of tooth paste produced and P is the price per tooth paste (in GH¢). What is the total profit at the profit maximizing level of output, and what is the best pricing policy option?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Dalahla Company Limited, focusing on producing tooth paste (in units) has a
4? = 35 − 0.5?. If total fixed cost is GH¢80 and average variable cost per unit function is 3? −51+325/Q
, where Q is number of tooth paste produced and P is the
What is the total profit at the profit maximizing level of output, and what is the best pricing policy
option?
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