21st Century Insurance TV Spot, 'Why Call a Century 21 Agent?'

Problem 2: Profit Maximization: Equations21st Century Insurance offers mail-order automobile insurance to preferred-risk drivers in the Los Angeles area. The company is the low-cost provider of insurance in this market but doesn't believe its annual premium of 1,500 can be raised for competitive reasons.Rates are expected to remain stable during coming periods; hence, P = MR =1,500 (this is a hint which might not be given in future problems). Total cost relation for the company is as followsTC =

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