(Solution) - Suppose the microchip producer discussed in this chapter faces d -(2025 Original AI-Free Solution)

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Suppose the microchip producer discussed in this chapter faces demand and cost equations given by Q = 8.5 - .05P and C = 100 + 38Q. Choosing to treat price as its main decision variable, it writes profit as
? = R - C
= [P(8.5 - .05P)] - [100 + (38)(8.5 -.05P)]
= - 423 + 10.4P - .05P2.
Derive an expression for M? = d?/dP. Then set M? =0 to find the firm?s optimal price. Your result should confirm the optimal price found earlier in the chapter.