A company produces a special new type of TV. The company has fixed costs of $476,000, and it costs $1500 to produce each TV. The company projects that if it charges a price of $2400 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to
A company produces a special new type of TV. The company has fixed costs of $476,000, and it costs $1500 to produce each TV. The company projects that if it charges a price of $2400 for the TV, it will be able to sell 850 TVs. If the company wants to sell 900 TVs, however, it must lower the price to
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
Related questions
Question
A company produces a special new type of TV. The company has fixed costs of
$476,000,
and it costs
$1500
to produce each TV. The company projects that if it charges a price of
$2400
for the TV, it will be able to sell
850
TVs. If the company wants to sell
900
TVs, however, it must lower the price to
$2100.
Assume a linear demand.What is the maximum profit that can be reached?
It is
$enter your response here
.
(Round answer to nearest cent.)
Expert Solution
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Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1: Introduce to the given information
VIEWStep 2: Determining the equation of the linear demand or the equation of price in terms of numbers of TV
VIEWStep 3: Determining the cost function and revenue function
VIEWStep 4: Determining the profit function and the critical points
VIEWStep 5: Determining if profit is maximum at critical point using second derivative test
VIEWStep 6: Determining the maximum profit
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