A commodity has a demand function modeled by p = 106 − 0.5x and a total cost function modeled by C = 30x + 33.75, where x is the number of units. (a) What unit price (in dollars) yields a maximum profit? $ per unit (b) When the profit is maximized, what is the average cost (in dollars) per unit? (Round your answer to two decimal places.) $ per unit
A commodity has a demand function modeled by p = 106 − 0.5x and a total cost function modeled by C = 30x + 33.75, where x is the number of units. (a) What unit price (in dollars) yields a maximum profit? $ per unit (b) When the profit is maximized, what is the average cost (in dollars) per unit? (Round your answer to two decimal places.) $ per unit
Chapter11: Profit Maximization
Section: Chapter Questions
Problem 11.4P
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Question
A commodity has a demand function modeled by
p = 106 − 0.5x
and a total cost function modeled by
C = 30x + 33.75,
where x is the number of units.(a)
What unit price (in dollars) yields a maximum profit?
$ per unit
(b)
When the profit is maximized, what is the average cost (in dollars) per unit? (Round your answer to two decimal places.)
$ per unit
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