Answer to Question #13801 in Microeconomics for jamal

Question

The Zinger Company manufactures and sells a line of sewing machines. Demand per period (Q)
for a particular model is given by the following relationship:
Q = 400 - 0.5P
where P is price. Total costs (including a "normal" return to the owners) of producing Q units per
period are:
TC = 20,000 + 50Q + 3Q2
(a) Express total profits () in terms of Q.
(6 marks)
(b) At what level of output are total profits maximized? What price will be charged? What are
total profits at this output level?
(7 marks)
(c) What model of market pricing has been assumed in this problem? Justify your answer