A dealer finds that the sales of a certain item are closely linked to the price he asks per item. If he asks for x dolla

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answerhappygod
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A dealer finds that the sales of a certain item are closely linked to the price he asks per item. If he asks for x dolla

Post by answerhappygod »

A dealer finds that the sales of a certain item are closely
linked to the price he asks per
item. If he asks for x dollars per item, then he can expect to
sell 600 - 50x items. Each
item costs him 5 dollars. How much must he ask per item to
maximize his total profit?
(b) Assume that a company’s marginal profit function is Y = 400
– 2x where x is number
of units sold. Given that the company breaks even on sales of 10
units, find the fixed
costs of the company.
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