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An electromechanical machine manufacturer has a demand function for his machines: P(q) = 5,500 - 20*q, where "P" represents Selling Price in $ and "q" represents number of machines sold in a given period. Additionally, it is known that Cost Function is given by: C(q) = 500*q + 5*q2 a) How many machines must be sold in a period to obtain a profit of $500,000? (Hint: U(q) = I(q) - C(q) b) How many machines must be sold to obtain a MAXIMUM profit per period and what would be MAXIMUM revenue achieved?

An electromechanical machine manufacturer has a demand function for his machines: P(q) = 5,500 - 20*q, where "P" represents Selling Price in $ and "q" represents number of machines sold in a given period. Additionally, it is known that Cost Function is given by: C(q) = 500*q + 5*q2 a) How many machines must be sold in a period to obtain a profit of $500,000? (Hint: U(q) = I(q) - C(q) b) How many machines must be sold to obtain a MAXIMUM profit per period and what would be MAXIMUM revenue achieved?

Algebra for College Students
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter12: Algebra Of Matrices
Section12.CR: Review Problem Set
Problem 37CR
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Course: Numerical Fundamentals
An electromechanical machine manufacturer has a demand function for his machines: P(q) = 5,500 - 20*q, where "P" represents Selling Price in $ and "q" represents number of machines sold in a given period.
Additionally, it is known that Cost Function is given by: C(q) = 500*q + 5*q2
a) How many machines must be sold in a period to obtain a profit of $500,000? (Hint: U(q) = I(q) - C(q)
b) How many machines must be sold to obtain a MAXIMUM profit per period and what would be MAXIMUM revenue achieved?

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