An Office Supply Company Sells Q Permanent Markers Per Year At P Per Marker The Price Demand Equation For These Marker 1 (39.28 KiB) Viewed 13 times
An Office Supply Company Sells Q Permanent Markers Per Year At P Per Marker The Price Demand Equation For These Marker 2 (21.37 KiB) Viewed 13 times
An Office Supply Company Sells Q Permanent Markers Per Year At P Per Marker The Price Demand Equation For These Marker 3 (20 KiB) Viewed 13 times
An office supply company sells Q permanent markers per year at $P per marker. The price-demand equation for these markers is P=10- 0.001Q. The total cost of manufacturing Q permanent markers is TC(Q)=5000+2Q. A. What is the company's maximum profit? B. What should the company charge for the markers, and how many markers should be produce to maximize the profit? Find the profit function first: TP(Q)=- 1. Find the critical values(s) 2. Test the second-order condition 3. Calculate the maximum profit TPmax 1. TP'(Q)=-
1. TP'(Q)=- Q+ C.v. : Q= 2. Second-derivative test. TP"(Q)= It is : O<0 Hence: Omaximum value exists Ominimum value exists A. What price should the company charge for the markers to maximize the profit? P=$ B. What is the maximum revenue? TP max=$ ↑
A maximum profit of $ is realized when markers are manufactured annually and sold for $
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