Exercise 5.4 A company is producing and selling branded milk with the following total cost function: CT(q)= 0.2q²+q+70. If the demand function for this brand of milk is: P=15-0.5q: a) Calculate the optimal price of milk, as well as the optimal quantity sold and the profits of the company.   b) Calculate the price elasticity of demand in the equilibrium of the company.   c) Justify why the company has an excess of productive capacity.   d) Represent graphically.

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