Problem: Zinger Company makes and sells a sewing machine line. manufactures and sells a line of sewing machines. Demand (Q) is represented by the equation below:
Q = 400 - .5P
P = price.
The total cost of making Q units/period are represented by:
TC = 20,000 + 50Q + 3Q2.
Q1. What is the expression for total profits in terms of Q?
a. 20,000 - 750Q + 5Q2
b. -20,000 + 750Q - 5Q2
c. 800Q - 2Q2
d. 400Q - .5PQ
Q2. What is the marginal revenue function for Zinger Company?
a. 2Q2 - 800
b. 400 - 2Q2
c. 800 - 2Q
d. 800 - 4Q
Q3. What price will be charged?
a. $650/unit
b. $65/unit
c. $6500/unit
d. $6.50/unit