You have been hired as the manager of a firm and you've been tasked with determining the optimal price for a product. Unfortunately, you lack specific information on demand and cost functions. However, you do have valuable insightsimplementing a 4% price discount results in an 11% increase in average quantity demanded. Each unit from the supplier costs $50, and the average total cost at current production levels is $75.

1. Determine your optimal per unit price to charge based on theprinciple below

the profit-maximizing output Q*, is such that

MR (Q*) = MC(Q*) and the profit-maximizing price is P*= P (Q* )