Always Round Tire's new division, Start-up Batteries, finds they have a Total Cost curve: TC = 300 + 2Q + 2Q2 and a Demand curve: P = 130 - 2Q.
If the division is operated as an independent Profit Center, what will be the price and quantity sold each day? Will the division make a profit?
If the division is operated purely a Revenue Center, how many batteries will they sell each day?
If the division is operated as a Cost Center and told to produce 20 batteries per day, what would be the cost per battery?
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