Problem: Suppose that the Big Toy company is the sole producer of a new trendy toy. Demand for this new toy is given by q=26-0.7p, where q is the number of units of the toy that consumers are willing to buy at price p. The total cost for the Big Toy company of producing q units of the new toy is 0.4q2+56.
A. If this were a competitive market, how many units of the toy would be sold?
B. If this were a competitive market, what would be the price of the toy?