Imagine that you are the financial director of a company that intends to bring into the market an innovative eco-friendly engine for garden machinery. This product has a fixed engineering cost of 800. The per-unit manufacturing cost is 140. Your product design's funding proposal won a government grant for low-carbon products, which in the initial years of your innovation cycle aims to over-subsidize your product and absorb the losses. This grant is currently 142 per unit manufactured by your company.

Formulate your grant-adjusted cost function, C in terms of the Quantity manufactured Q

Assume that the Demand Function (Demand vs Quantity) matches exactly with your cost function (Cost vs Quantity). The government subsidy is applicable only for the initial production lot. If your goal was to maximise the revenue resulting from sales of this initial production run, then how many units of the product (Q) will have to brought into the market by your firm ?