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The Trusted Genuine Masters company produces forged paintings for sale at well-known auction houses. The company estimates that its demand equation is q =-25p+5,000 paintings
The Trusted Genuine Masters company produces forged paintings for sale at well-known auction houses. The company estimates that its demand equation is q =-25p+5,000 paintings sold per month when priced at p Euros each. It has monthly fixed costs of E400 and variable costs of E10 per painting. a. Find the company's monthly revenue, cost, and profit as functions of p, the price per painting. (25 points) b. Draw the graphs of revenue and cost functions and determine the equilibrium price. How many paintings would be sold at the equilibrium price? (25 points)
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