Question

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 the product are assumed to be as follows:

TC = 40 + 50Q = 5Q2
Q = 34 – 0.2P

a) Determine the short-run profit-maximizing price
b) Plot this information on a graph showing AC, AVC, MC, P and MR. (Excel)

For Question b), using quantity from 1 to 20.