Mathematics

Mathematics

Problem

A firm faces the cost function C(q)=0.05q2+8q+1500C(q)=0.05q^{2}+8q+1500 dollars and can sell its output at the price p(q)=120−0.3qp(q)=120-0.3q dollars per unit. A tax of \$4 per unit is imposed on all sales. Determine the price the firm should charge per unit, after accounting for the tax, in order to maximize profit.

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