company produces a special new type of TV. The company has fixed costs of $486,000, and it costs $1200 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2200. Assume a linear demand. What price should be set to earn maximum profits?
company produces a special new type of TV. The company has fixed costs of $486,000, and it costs $1200 to produce each TV. The company projects that if it charges a price of $2500 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2200. Assume a linear demand. What price should be set to earn maximum profits?
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...
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Question
A company produces a special new type of TV. The company has fixed costs of
$486,000,
and it costs
$1200
to produce each TV. The company projects that if it charges a price of
$2500
for the TV, it will be able to sell
750
TVs. If the company wants to sell
800
TVs, however, it must lower the price to
$2200.
Assume a linear demand.What price should be set to earn maximum profits?
It is
$enter your response here
per TV.(Round answer to two decimal places.)
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