A firm exclusively produces a product with a demand function reverse is
first
75
5
P Q   and the total cost function is 1 14 3 2 C(Q) Q Q 15Q+5.
10 5
  
Where, Q is the output, P is the unit price of the product.
a) (CLO1.3, CLO2.2, CLO4.2) Determine the level of output and selling price to maximize profit.
b) (CLO1.3, CLO2.2, CLO4.2) Calculate and state the significance of the price elasticity of demand and
optimal output.