Scranton Heating & Air Conditioning, Inc., offers heating and air conditioning system inspections in the Scranton, Pennsylvania, market. Prices are stable at $50 per unit. This means that P = MR = $50 in this market. Total cost (TC) and marginal cost (MC) relations are:
- TC = $1,000,000 + $10Q + $0.00025Q(squared)
- MC = d(TC)/ dQ = $10 + $0.0005Q
Calculate the output level that will maximize profit.
Calculate this maximum profit.