Problem: The manufacture of high-quality flatbed scanners is trying to decide what price to set forits product. The costs of production and the demand for the product are assumed to be as follows: D TC = 500,000 + 0.85Q + 0.015Q and MC = 0.85 + 0.03Q; Q =14,166 - 16.6P2
Q1. Determine the short-run profit maximizing price.
Q2. Show on a diagram the firm's AC, AVC, MC, P and MR.