A firm faces the cost function dollars and can sell its output at the price dollars…
MATHEMATICS · Subjective · CBSE · Mathematics · Applications of Derivatives · Applications of Derivatives
Problem
A firm faces the cost function C(q)=0.05q2+8q+1500 dollars and can sell its output at the price p(q)=120−0.3q dollars per unit. A tax of $4 per unit is imposed on all sales. Determine the price the firm should charge per unit, after accounting for the tax, in order to maximize profit.