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Suppose that for a product in a competitive market, the demand function is p = 800 3 x and the supply function is p =

Suppose that for a product in a competitive market, the demand function is

p = 800 3x

and the supply function is

p = 200 + 3x,

where x is the number of units and p is in dollars. A firm's average cost function for this product is as follows.

C(x) = 13,000/x +40+x

Find the maximum profit, in dollars.

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A nice problem First lets find the firms total revenue function Rx px Since the demand function is p ... blur-text-image

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