How to find the firms optimal price

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Suppose the microchip producer faces demand and cost equations given by Q= 8.5 - 0.5P and C = 100 = 38Q. Choosing to treat price as its main decision variable, it writes profit as: f= R- C = [P(8.5-.05P)] - [100+(38)(8.5 - .05P)] = -423 +10.4P - .05P^2. Derive an expression for M=df/dP. Then set M = 0 to find the firm's optimal price.

Reference no: EM13207868

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