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
Posted: Wed May 11, 2022 7:02 am
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.
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.