Problem
The manufacturer of high-quality flatbed scanners is trying to decide what price to set for its product. The costs of production and the demand for product are assumed to be as follows:
TC = 500,000 + 0.85Q + 0.015 Q2
Q = 14,166 - 16.6P
1. Determine the short-run profit-maximizing price.
2. Plot this information on a graph showing AC, AVC, MC, P, and MR.