Question

3. In all of this question let q> 0 represent quantity (i.e. number of units) and p > 0 represent unit price (i.e. price per unit). Assume a demand function p = and an average cost 1 100 function cq) = + (a) Given that "profit = revenue - cost" find the profit function, F(q). [4 points) (b) Find the value of q that maximizes total profit and state the maximum profit. Sufficiently justify that your value actually maximizes the total profit function. [9 points) (c) Verify that "marginal revenue" = "marginal cost" at the value of q that maximizes total profit. [3 points)