Nyameye Company Limited is a new business established to produce blocks (in units). The demand function for blocks is given as 4 = 35−0.5P. It has been estimated that the total fixed cost is GH¢80 and average variable cost function is 3−51+ 320, where Q is number of blocks produced and P is the price per block (in GH¢). Given this information, what is the total profit at the profit maximizing level of output, and what is the best pricing policy option?
