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Perfect Solar Panels is the only firm that sells and installs
solar panels in Reno, Nevada. They have estimated their demand
curve as

Q = 6680 – 0.4P

where Q is the quantity sold per month and P is the price
charged. Their fixed cost is $200,000 and their average variable
cost is:

AVC = 2000 – 5.5Q + 2Q2

What is their monthly profit or loss at the optimal level
of output?

Question 4 options:

profit of $524,025

profit of $155,756

loss of $542,025


Loss of $155,756