Compute company-s optimal profit and return-on-sales levels, Microeconomics

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Compute company-s optimal profit and return-on-sales levels

Hardwood Cutters offers seasoned, split fireplace logs to consumers in Toledo, Ohio. The company is the low-cost provider of firewood in this market with fixed costs of $10,000 per year, plus variable costs of $25 for each cord of firewood. Annual demand and marginal revenue relations for a company are:

P= $225-$0.125Q
MR=∂TR/∂Q=$225-$0.25Q

A. Calculate the profit-maximizing activity level.
B. Calculate the company's optimal profit and return-on-sales levels.

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Microeconomics: Compute company-s optimal profit and return-on-sales levels

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Microeconomics: Compute company-s optimal profit and return-on-sales levels

Reference No:- TGS051166

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