In the town of inksville tats for tots ie tft is the only, Ask an Expert

Economics

In the town of Inksville, Tats for Tots (i.e., TFT) is the only tattoo parlor dedicated to the under-18 age group. Being a monopolist, TFT hires you to advise it on the best price and quantity of tattoos to sell each month. You estimate the following inverse monthly market demand for tattoos:

P = 1000 - Q,

Where P is the price charged per tattoo and Q is the overall quantity of tattoos produced and sold each month. You also estimate the monthly total cost (TC) for TFT, given by the following:

TC = 20,000 + 200•Q.

Determine the values of P and Q which maximize TFT’s profit. What is TFT’s profit at these optimal values of P and Q?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91677672

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