A company produces a special new type of TV. The company has fixed costs of $452,000, and it costs $1200 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2300. Assume a linear demand. If the company sets the price of the TV to be $3800, how many can it expect to sell?
A company produces a special new type of TV. The company has fixed costs of $452,000, and it costs $1200 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 800 TVs. If the company wants to sell 850 TVs, however, it must lower the price to $2300. Assume a linear demand. If the company sets the price of the TV to be $3800, how many can it expect to sell?
Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 23EQ:
23. Consider a simple economy with just two industries: farming and manufacturing. Farming consumes...
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A company produces a special new type of TV. The company has fixed costs of
$452,000,
and it costs
$1200
to produce each TV. The company projects that if it charges a price of
$2600
for the TV, it will be able to sell
800
TVs. If the company wants to sell
850
TVs, however, it must lower the price to
$2300.
Assume a linear demand.If the company sets the price of the TV to be
$3800,
how many can it expect to sell?Expert Solution
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