Spinners World is a fitness equipment company that manufactures spin bikes. The market research department recommends that the company manufacture a new model of spin bikes and presents the following demand equation x = 35000-50p, where x is the demand at $p per bike. (a) Solve the demand equation for p. The financial department also provides the cost function C(x)= 8,000+200x. (b) Analyse the revenue and profit function to produce x bikes while Identifying what the marginal revenue and the marginal profit equation signifies. (c) Determine the exact and approximate revenue from manufacturing the 31st spin bike.
Spinners World is a fitness equipment company that manufactures spin bikes. The market research department recommends that the company manufacture a new model of spin bikes and presents the following demand equation x = 35000-50p, where x is the demand at $p per bike. (a) Solve the demand equation for p. The financial department also provides the cost function C(x)= 8,000+200x. (b) Analyse the revenue and profit function to produce x bikes while Identifying what the marginal revenue and the marginal profit equation signifies. (c) Determine the exact and approximate revenue from manufacturing the 31st spin bike.
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
Chapter11: Price And Output Determination: Monopoly And Dominant Firms
Section: Chapter Questions
Problem 5E
Related questions
Question
Spinners World is a fitness equipment company that manufactures spin bikes.
The
(a) Solve the demand equation for p.
The financial department also provides the cost function C(x)= 8,000+200x.
(b) Analyse the revenue and profit function to produce x bikes while Identifying what the marginal revenue and the marginal profit equation signifies.
(c) Determine the exact and approximate revenue from manufacturing the 31st spin bike.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning