Determine the profit maximizing price-output and profit

Reference no: EM13209558

Digital, Inc., is a manufacturer and distributor of blank computer disks for residential use. Revenue and cost relations are: TR= $4,500Q - $0.1Q2 TC= $2,000,000 + $1,500Q + $0.5Q2 Where Q is the quantity produced and sold per week.

a. Determine the profit maximizing price, output and profit. (Be sure to show that it is a maximum or a minimum, the second order condition)

b. Determine the revenue maximizing price, output and profit. (Be sure to show that it is a maximum or a minimum, the second order condition)

Reference no: EM13209558

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