Not sure how to find Total Cost from the information given. I know to find the p

Question

Not sure how to find Total Cost from the information given. I know to find the profit equation you need to do TR-TC. Any help would be great for number one!

Name: A U.S. textbook publisher is introducing a new economics textbook, Managerial Economics -It is no Graphing matter, to the domestic market. Each book is produced at a constant marginal cost of $122 per book. Management predicts that annual domestic demand for the book is: PD = 278-0.4QD, where Po price of a book in dollars, and Qp denotes the number of books (in thousands). a. State the profit equation for the domestic market: b. Determine the optimal quantity and price of the book in the domestic market: 2 points c. Using your answers to parts a and b, compute the total profit in the domestic market, assuming no fixed costs: 1 point The company is also considering supplying the international textbook market, where marginal cost is assumed to be S130 per book due to higher shipping costs. Foreign demand is Pr 200-0.5QF. State the total profit equation AND the marginal profit equation for the foreign market: d. 2 points

Explanation / Answer

i) Profit =TR - TC

Total Revenue = Price * Number of units

Given : Marginal Cost = $122

Total Cost = 122 * Q

PD = 278 - 0.4QD

Total Revenue = QD * PD

= QD (278 - 0.4QD)

Profit = 278QD - 0.4QD2

Thus, Profit Equation= TR - TC

278 QD - 0.4 QD2 - 122QD

= 0.4QD- 156 QD

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