Find the firm''s profit p(q) and the value of q

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Reference no: EM131200737

The price a firm obtains for a commodity varies with demand Q according to the formula P (Q) = 18 - 0.006Q. Total cost is C(Q) = 0.004Q² + 4Q + 4500.

(a) Find the firm's profit p(Q) and the value of Q that maximizes profit.

(b) Find a formula for the elasticity of P (Q) w.r.t. Q, and find the particular value Q* of Q at which the elasticity is equal to -1.

Reference no: EM131200737

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