Problem
Bruno owns an Italian gelato shop. The demand for gelato is q = 1500 - 250p, and his costs are TC(q) = q + 0.006q^2. q is the number of scoops of gelato sold per week, TC(q) is Bruno's weekly total cost, and p is the price of a gelato.
(a) What price and output will Bruno choose to maximize profits?
(b) Bruno returns to college and asks hir cousin Marco to manage his gelato business. Marco faces the same demand and cost conditions as Bruno, but he decides to maximize revenue. What price and output should he choose?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.