A business has found that it can sell 740 items if it sets its price to $62.23. However, if it lowers its price to $40.13, it can sell 870 items. (a) Find the linear demand equation (price function) for selling x items. (round to 4 decimal places) p(m) : -22.1/130x+188.03 It costs the business $6.33 per item to produce and they have $3,250 in overhead each month. (b) Find the linear Cost, and quadratic Revenue and Profit functions for producing/selling x items: (round to 4 decimal places) C (r) = 6.33 x+3250 R(x) = Number 22+Number x+ Number P(z) = Number 22+ Number x+ Number (c) Consider the maximum profit the company can make: items at a price of $ Number each and they will make $ Number To maximize their profit, they should sell Number in profit
A business has found that it can sell 740 items if it sets its price to $62.23. However, if it lowers its price to $40.13, it can sell 870 items. (a) Find the linear demand equation (price function) for selling x items. (round to 4 decimal places) p(m) : -22.1/130x+188.03 It costs the business $6.33 per item to produce and they have $3,250 in overhead each month. (b) Find the linear Cost, and quadratic Revenue and Profit functions for producing/selling x items: (round to 4 decimal places) C (r) = 6.33 x+3250 R(x) = Number 22+Number x+ Number P(z) = Number 22+ Number x+ Number (c) Consider the maximum profit the company can make: items at a price of $ Number each and they will make $ Number To maximize their profit, they should sell Number in profit
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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How do I get the revenue and profit. I also do not know how to get the number they should sell
Transcribed Image Text:A business has found that it can sell 740 items if it sets its price to $62.23. However, if it lowers its price to $40.13, it can sell 870 items.
(a) Find the linear demand equation (price function) for selling x items. (round to 4 decimal places)
p(x) = -22.1/130x+188.03
固助画
It costs the business $6.33 per item to produce and they have $3,250 in overhead each month.
(b) Find the linear Cost, and quadratic Revenue and Profit functions for producing/selling x items: (round to 4 decimal places)
C (x) = 6.33
x+3250
R(x)= Number
x+Number
x+ Number
P (x) =
Number
22+ Number
x+Number
%3D
(c) Consider the maximum profit the company can make:
items at a price of $ Number
each and they will make $ Number
To maximize their profit, they should sell Number
in profit.
Expert Solution
Step 1
Given
Demand function in part a
... (1)
Cost function:
C(x)=6.23x+3250 ... (2)
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