The unit prices that will yield a maximum profit for the products, which are substitute, with the respective demand functions given by, x 1 = 200 ( p 2 − p 1 ) and , x 2 = 500 + 100 p 1 − 180 p 2 Where p 1 and p 2 are the prices per unit (in dollar) and x 1 , x 2 are the numbers of unit 5 sold, when the costs of producing the two products are dollar 0.75 and dollar 0.50 per unit, respectively.

BuyFind

Calculus: An Applied Approach (Min...

10th Edition
Ron Larson
Publisher: Cengage Learning
ISBN: 9781305860919
BuyFind

Calculus: An Applied Approach (Min...

10th Edition
Ron Larson
Publisher: Cengage Learning
ISBN: 9781305860919

Solutions

Chapter 7.5, Problem 4CP
To determine

To calculate: The unit prices that will yield a maximum profit for the products, which are substitute, with the respective demand functions given by,

x1=200(p2p1)and,x2=500+100p1180p2

Where p1 and p2 are the prices per unit (in dollar) and x1, x2 are the numbers of unit 5 sold, when the costs of producing the two products are dollar 0.75 and dollar 0.50 per unit, respectively.

Expert Solution

Want to see the full answer?

Check out a sample textbook solution.

Want to see this answer and more?

Experts are waiting 24/7 to provide step-by-step solutions in as fast as 30 minutes!*

*Response times may vary by subject and question complexity. Median response time is 34 minutes for paid subscribers and may be longer for promotional offers.