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Addis Music Company of D.C. enjoys an exclusive copyright for music written by KuKu, a legendary African Reggie group. Total revenue and cost for the group is as given below:
C=f(Q)=880+0.25Q+0.0025Q^2P=20.25-0.01Q
P (the second equation) is the inverse demand curve. it is also the price (thus = P(Q)C is total costQ is CDs produced and sold in units (demand)
A. Calculate the unit price if the ventor sold 200 CDs.
B. Calculate the demand curve for CD.
C. Calculate the fixed and variable costs.
D. Calculate the break even quantities (number of CDS).
E. Calculate the profit maximizing level of operation, the number of CDs the company will produce to maximize profit.
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