Ice-Cream Company Is Selling Its Product to Individual Consumers and Restaurants

Essay

Ice-cream company is selling its product to individual consumers and restaurants. The demand functions of the two types of customers and the total cost function of the ice-cream company are given below.
$$\text { Comsumers: } Q _ { 1 } = 100 - 5 P _ { 1 }$$ $$\text { Restaurants: } Q _ { 2 } = 100 - 10 P _ { 2 }$$ What is the optimal level of output and how should the firm distribute its sales?
$$T C = 50 + 5 Q$$