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?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter11: Price And Output Determination: Monopoly And Dominant Firms

Section: Chapter Questions

Problem 3E

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