Key data regarding Price Elasticity of Demand
Given the following cost and inverse demand function
P(Q) = 50 - .00025Q
C(Q) = 361, 250 + 5Q + .0002Q²
a. Find the total revenue?
b. Find the marginal and average costs and graph the functions in the ranges of Q= 40,000, 42500, 45,000.
c. Briefly describe the point of intersection between MC and ATC (AC) in terms of production and cost theory.
d. find out the profit maximization level of production (activity) and the total profit earned by the firm.
e. What is/are the breakeven levels of operation (activities)?
f. find out the price elasticity of demand at profit maximization level of output?