Firm S is the only producer of a particular type of foam

| March 14, 2016

Firm S is the only producer of a particular type of foam fire retardant and insulation used
in the construction of commercial buildings. The inverse demand equation for the product
is.
P= 1,500­.1Q
where Q is the annual sales quantity in tons and P is the price per ton. The firm’s total
cost function (in dollars) is
C= 1,400,000 + 300Q+ .05Q22
A. To maximize profit, how much foam insulation should firm S plan to produce and
sell? What price should it charge?
B. Compute the firms total Profit.

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