For a company that manufactures wooden furniture the fixed costs is $900,000 per month. The variable cost per piece is$131.50. The demand for the furniture is given by the equation p $600-0.05D Find the optimal volume and calculate the profit at that level.

Microeconomic Theory
12th Edition
ISBN:9781337517942
Author:NICHOLSON
Publisher:NICHOLSON
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.4P
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For a company that manufactures wooden furniture the fixed costs is $900,000 per month. The variable cost per piece is$131.50. The demand for the furniture is given by the equation p $600-0.05D

Find the optimal volume and calculate the profit at that level. 

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