The firm, competing in a very highly competitive market, is manufacturing and selling headphones. The firm’s...

The firm, competing in a very highly competitive market, is manufacturing and selling headphones. The firm’s total revenue and cost functions are:

Rq=q3+14q2+35q+40

Cq=13q3+20q2+19q+15

How many headphones must the firm manufacture and sell to maximize profits?
What will be the price the firm must charge to its customers to maximize profits?
What will be the average revenue generated for each unit sold and what will be the average cost of producing a headphone?

Expert Solution

Rahul Sunny answered 1 year ago

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