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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?

College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter4: Polynomial And Rational Functions
Section4.1: Quadratic Functions
Problem 6SC: A company that makes and sells baseball caps has found that the total monthly cost C in dollars of...
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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?
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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