The firm, competing in a very highly competitive market, ismanufacturing and selling headphones. The firm’s total revenue andcost functions are:
Rq=q3+14q2+35q+40
Cq=13q3+20q2+19q+15
- How many headphones must the firm manufacture and sell tomaximize profits?
- What will be the price the firm must charge to its customers tomaximize profits?
- What will be the average revenue generated for each unit soldand what will be the average cost of producing a headphone?
