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Q. 1. The Zinger Company manufactures also sells a line of sewing machines. Monthly demand for one its most popular models is given by the subsequent relationship:
Q = 400 - 0.5P
where P is price also Q is quantity demanded. Total costs of production (including a "normal" return on owners' investment) per month are:
C = 20,000 + 50Q + 3Q2
a. ) in terms of Q.?Express total profits (
b. At illustrate what level of o/p are total profits maximized? Illustrate what price will be charged? Illustrate what are total profits at this o/p level?
c. Illustrate what marketplace structure did you assume? Why?
d. Would your answers in b change if the marketplace for sewing machines were competitive? How? (Specify price, quantity also profit levels.)
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