Dalahla Company Limited, focusing on producing tooth paste (n units) has a demand function 4Q = 35 – 0.5P. If total fixed cost is GH¢80 and average variable cost per unit function is 3Q – 51 + e, 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? 320

Dalahla Company Limited, focusing on producing tooth paste (n units) has a demand function 4Q = 35 – 0.5P. If total fixed cost is GH¢80 and average variable cost per unit function is 3Q – 51 + e, 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? 320

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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