Answer:
Following are the solution to this question:
Step-by-step explanation:
Please find the complete question in the attached file.
The highest benefit is where the unit benefit equals the marginal income
Marginal price = 17q
Score of income=-0.05q
MC = MR
MC=17
MR =DERIVATIVE OF ([tex]80q-0.05 q^2[/tex])
[tex]=80-2 \times 0.05q\\\\=80-0.1q[/tex]
[tex]\to MR=MC \\\\[/tex]
[tex]80-0.1q=17\\\\80-17= 0.1q\\\\0.1q=63\\\\q= \frac{63}{0.1}\\\\q=630[/tex]
Retail prices calculation
[tex]\to P=80-630 \times 0.05[/tex]
[tex]=80 -31.5\\\\= 48.5[/tex]
