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Q1. Short Run Profit Maximizing
The producer of high-quality flatbed scanners is tiresome to decide what price to set for its product. The costs of production and the demand for the product are assumed to be as follows: TC = 500,000 + 0.85Q + 0.015Q2 and Q =14,166 - 16.6P. Conclude the short-run profit maximizing price. Apply this information on a graph showing AC, AVC, MC, P and MR.
Q2. Explain the relationship among the bowed out shape of the production possibilities frontier and the increasing opportunity cost of a good as more of it is produced?
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