Digital, Inc., is a manufacturer and distributor of blank computer disks for residential use. Revenue and cost relations are: TR= $4,500Q - $0.1Q2 TC= $2,000,000 + $1,500Q + $0.5Q2 Where Q is the quantity produced and sold per week.
a. Determine the profit maximizing price, output and profit. (Be sure to show that it is a maximum or a minimum, the second order condition)
b. Determine the revenue maximizing price, output and profit. (Be sure to show that it is a maximum or a minimum, the second order condition)