Posted: May 27th, 2015

This is the project equation:

This is the project equation:

Project # 5: Suppose that the cost function for a product is given by ??(??)=0.05??2-10??+1000. The demand function for product is ??=-5??+200.

Questions

(Use of MATHEMATICA software) is recommended . Use these questions to answer project equation above

1. Develop a 2D plot for demand versus the price.
2. Develop a 2D plot for average cost versus the quantity.
3. Compute the demand elasticity when price equal to 1.
4. Compute the marginal cost when the quantity is equal 1.
5. Develop the profit function.
6. Develop 3D plot for profit function versus price and quantity.
7. Find the quantity that maximizes the total profit.
8. What is the price that maximizes the profit?
9. What is the maximum profit?