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1. Suppose the microchip producer faces demand and cost equations given by: Q =8.5 - .05P and C = 100 + 38Q Choosing to treat

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1. Suppose the microchip producer faces demand and cost equations given by: Q =8.5 - .05P and C = 100 + 38Q Choosing to treat price as its main decision variable, it writes profit as: TER - C = [P(8.5 - .05P) ] - [100 + (38) (8.5 - .05P)] -423 + 10.4P - .05P-. Derive an expression for M. = d./dp. Then set M. = 0 to find the firm's optimal price

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