A company produces and sells a consumer product and is able to control the demand by varying the selling price. Theapproximate relationship between price and demand is27005000p = 38 +(for D>1)D²The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What isthe number of units and total amount that should be produced and sold each month to maximize profit?

Given demand function is p=38+2700D-5000D2 Note D>1 Total fixed cost =$1000 and variable…

A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5000 p = 38 + D %3D (for D>1) D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units and total amount that should be produced and sold each month to maximize profit?

A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5000 p = 38 + D %3D (for D>1) D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units and total amount that should be produced and sold each month to maximize profit?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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