A manufacture has been selling 1000 television sets a week at $360 each. A market survey indicates that foreach $29 rebate offered to a buyer, the number of sets sold will increase by 290 per week.a) Find the demand function p(æ), where æ is the number of the television sets sold per week.p(x) =b) How large rebate should the company offer to a buyer, in order to maximize its revenue?c) If the weekly cost function is 60000 + 120x, how should it set the size of the rebate to maximize its profit?

Given information:- Total quantity sold- 1000 television sets per week Per unit price- $360 Rebate…

A manufacture has been selling 1000 television sets a week at $360 each. A market survey indicates that for each $29 rebate offered to a buyer, the number of sets sold will increase by 290 per week. a) Find the demand function p(x), where æ is the number of the television sets sold per week. p(x) = b) How large rebate should the company offer to a buyer, in order to maximize its revenue? $ c) If the weekly cost function is 60000 + 120æ, how should it set the size of the rebate to maximize its profit?

A manufacture has been selling 1000 television sets a week at $360 each. A market survey indicates that for each $29 rebate offered to a buyer, the number of sets sold will increase by 290 per week. a) Find the demand function p(x), where æ is the number of the television sets sold per week. p(x) = b) How large rebate should the company offer to a buyer, in order to maximize its revenue? $ c) If the weekly cost function is 60000 + 120æ, how should it set the size of the rebate to maximize its profit?

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter7: Production Economics

Section: Chapter Questions

Problem 4E

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