3. A local contractor is considering the production of the fireworks. The variable cost per unit is $30. The fixed cost is $9,000. The price per unit is determined by equation p = 230-4D where D is the demand. (a) What is the optimum number of unit produced? (b) What is the profit if the optimum number of unit made?

3. A local contractor is considering the production of the fireworks. The variable cost per unit is $30. The fixed cost is $9,000. The price per unit is determined by equation p = 230-4D where D is the demand. (a) What is the optimum number of unit produced? (b) What is the profit if the optimum number of unit made?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.5IP

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