Nyameye Company Limited is a new business established to produce blocks (in units). The demand function for blocks is given as 4Q = 35 -0.5P. It has been estimated that the total fixed cost is GH¢80 and average variable cost function is 3Q -51 + 320, where Q is number of blocks produced and P is the price per block (in GHe). Given this information, what is the total profit at the profit maximizing level of output, and what is the best pricing policy option?
Nyameye Company Limited is a new business established to produce blocks (in units). The demand function for blocks is given as 4Q = 35 -0.5P. It has been estimated that the total fixed cost is GH¢80 and average variable cost function is 3Q -51 + 320, where Q is number of blocks produced and P is the price per block (in GHe). Given this information, what is the total profit at the profit maximizing level of output, and what is the best pricing policy option?
Chapter7: Systems Of Equations And Inequalities
Section7.1: Systems Of Linear Equations: Two Variables
Problem 2SE: If you are performing a break-even analysis for a business and their cost and revenue equations are...
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Transcribed Image Text:Nyameye Company Limited is a new business established to produce blocks (in units). The demand
function for blocks is given as 4Q = 35 -0.5P. It has been estimated that the total fixed cost is
GHØ80 and average variable cost function is 30 - 51 + 220, where Q is number of blocks produced
and P is the price per block (in GH¢). Given this information, what is the total profit at the profit
maximizing level of output, and what is the best pricing policy option?
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