Marketing research has found that at a price of $179.95 per unit, sales would be 175,000 units each week. If that price were to be raised by $10 per unit then sales would decrease by 5,000 units each week. Production costs for this item are $54 per unit with weekly overhead costs of $225,000. Let x represent the number of units produced and sold each week.

Marketing research has found that at a price of $179.95 per unit, sales would be 175,000 units each week. If that price were to be raised by $10 per unit then sales would decrease by 5,000 units each week. Production costs for this item are $54 per unit with weekly overhead costs of $225,000. Let x represent the number of units produced and sold each week.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.2IP

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