A manufacturer has found out that if he is to increase his current sales, he must lower his current price. His marginal revenue (MR) from an output x is given by the expression MR=148 - 2x. The marginal production cost (MC) is Ksh 36 and fixed costs amount to Ksh 1,000.

Required

i)Derive the revenue and total cost functions. (4 marks)

ii)Determine the output and price that would maximize profit.(4 marks)

iii) Compute the maximum profit.(2 marks)