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A firm has analysed its sales and profitability and found that its profit can be represented as:…

A firm has analysed its sales and profitability and found that its profit can be represented as:

A firm has analysed its sales and profitability and found that its profit can be represented as:...

where F is profit (£000s) and Q is units sold (in 000s).

It has also found that its costs are:

A firm has analysed its sales and profitability and found that its profit can be represented as:...

where C is costs (£000s).

(a) Obtain a third equation showing the firm’s revenue, R.

(b) Using a graph determine how many units the firm should sell to maximise profit.

(c) What will the firm’s costs be at the profit-maximising level of sales?