Managerial Economics & Organizational Architecture 6th Edition by James Brickley , Clifford Smith ,Jerold Zimmerman

Exercise 9

You work for HiTek Bikes that designs and manufactures a high performance road bike frame, the Dura Carbon Ace. The demand curve for this frame is given by P = $6,600 10 Q , where Q is the number of frames sold and P is the price. The total cost of production is TC = Q 2. Given this total cost curve, we know that marginal cost is MC = 2 Q.
From the firm's standpoint, what is the optimal transfer price