You are the sole producer of a novel polymer that has the potential to transform a number of other industries: synthetic clothing, medical devices, and sports equipment, for example. You have a patent on the chemical structure for this polymer for nine more years. From the entirety of industries that will use your product, you face a demand curve given by P = 400-10Q. (Units are in thousands of tons produced per year.) Your marginal cost curve is given by MC = 5+ 15Q. A. Identify the quantity at which you'll want to produce, Q', to maximize profit. (Round down to the nearest thousand tons of production.)

You are the sole producer of a novel polymer that has the potential to transform a number of other industries: synthetic clothing, medical devices, and sports equipment, for example. You have a patent on the chemical structure for this polymer for nine more years. From the entirety of industries that will use your product, you face a demand curve given by P = 400-10Q. (Units are in thousands of tons produced per year.) Your marginal cost curve is given by MC = 5+ 15Q. A. Identify the quantity at which you'll want to produce, Q', to maximize profit. (Round down to the nearest thousand tons of production.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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