Question

ABC company is producing an item at unit cost of Rs.4:

a) If the supply function is, q=160+8p , where q represents the quantity produced and p

represents the market price, then find total cost function in terms of p.

b) What is the market price at which company realizes a total profit of Rs.500?​

Answer 1

q=160+8p

q=4

4=160+8p

-8p=160-4

-8p=156

p=156+8

p=164.