HITACHI LTD. an air conditioner manufacturer, produces 'x' sets per week at a total costof x2+780x+25000. The firm is a monopolist and the demand function for its product is x= (15000 -), where the price is 'p' per set.4(i) Determine the number of AC sets to be produced per week at which the firm willearn maximum net revenue; and(ii) Decide the monopoly price.

A monopoly price is set by a seller with market power that is a seller who can drive up the price by…

HITACHI LTD. an air conditioner manufacturer, produces 'x' sets per week at a total cost of x²+780x+25000. The firm is a monopolist and the demand function for its product is x = (15000 - P), where the price is 'p' per set. (i) Determine the number of AC sets to be produced per week at which the firm will earn maximum net revenue; and (ii) Decide the monopoly price.

HITACHI LTD. an air conditioner manufacturer, produces 'x' sets per week at a total cost of x²+780x+25000. The firm is a monopolist and the demand function for its product is x = (15000 - P), where the price is 'p' per set. (i) Determine the number of AC sets to be produced per week at which the firm will earn maximum net revenue; and (ii) Decide the monopoly price.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter7: Nonlinear Optimization Models

Section: Chapter Questions

Problem 45P

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