The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per barrel is $16. Price is related to demand according to the following linear equation. v - 75,000  1,153.8p Develop the nonlinear profit function for the brewery and determine the price that will max- imize profit, the optimal volume, and the maximum profit per year.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter9: Applications Of Cost Theory
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The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per
barrel is $16. Price is related to demand according to the following linear equation.
v -
75,000  1,153.8p
Develop the nonlinear profit function for the brewery and determine the price that will max-
imize profit, the optimal volume, and the maximum profit per year.

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