- 1 Commercial Recording Inc Is A Manufacturer And Distributor Of Reel To Reel Recording Decks For Commercial Recording 1 (11.56 KiB) Viewed 29 times
- 1 Commercial Recording Inc Is A Manufacturer And Distributor Of Reel To Reel Recording Decks For Commercial Recording 2 (22.61 KiB) Viewed 29 times
1. Commercial Recording, Inc. is a manufacturer and distributor of reel-to-reel recording decks for commercial recording studios. Demand and cost relations are: P= 3,000 - 0.50 TC = 100,000 + 1,500Q + 0.102
d. Using the Total Revenue function in parta," calculate quantity, price, and profit at the revenue-maximizing level. Prove that "Q" maximizes revenues. e. What is your Average Cost function (AC = TC/Q)? f. Using the Average Cost function in part "h," calculate quantity, price, and profit at the average cost-minimizing activity level. Prove that "Q" minimizes average cost. 8. What are the conditions (rules) for profit maximization, revenue maximization, and average cost minimization?