Q. Hardwood Cutters presents seasoned as well split fireplace logs to consumers in Toledo, Ohio. The low-cost provider company is of firewood in market with fixed costs of $10,000 per year, plus variable costs of $25 for each cord of firewood. Yearly marginal revenue also demand relations for a company are:
P= $225-$0.125Q
MR=∂TR/∂Q=$225-$0.25Q
A. Compute the profit-maximizing activity level.
B. Compute the company's optimal profit and return-on-sales levels.