The Madison Corporation, a monopolist, receives a report from a consulting firm concluding that the demand function for its product is
Q = 78 -2P + 2Y + 0.9A where Q is the number of units sold, P is the price of its product
(in dollars),Y is per capita income (in thousands of dollars), and A is the firm’s advertising expenditure (in thousands of dollars).The firm’s average variable cost function is
AVC = 42 + 4Q where AVC is average variable cost
(in dollars), and the firm does not incur any fixed cost. If per capita income is $ 4,000 and advertising expenditure is $ 200,000