Always Round Tire's New Division,Start-Up Batteries,finds That Its Total Cost

question 28

Essay

Always Round Tire's new division,Start-up Batteries,finds that its total cost curve,TC = 300 + 2Q + 2Q² and its demand curve,P = 130 - 2Q.
If the division is operated as an independent profit center,what will be the price and quantity sold each day? Will the division make a profit?
If the division is operated purely as a revenue center,how many batteries will they sell each day?
If the division is operated as a cost center and told to produce 20 batteries per day,what would be the cost per battery?

---

Definitions:

Environmentally Safe Material

Substances or materials that do not cause harm to the environment, including humans, wildlife, and plants.

Expected Payoff

The average return or outcome expected for a given investment or decision under uncertainty.

Prior Probabilities

The probability of an event or hypothesis before new evidence is taken into account, often used in Bayesian analysis.

Videography Business

A business that specializes in the production of video content, including filming, editing, and distributing videos.