A business has found that it can sell 750 items if it sets its price to $63.61. However, if itlowers its price to $45.95, it can sell 950 items.(a) Find the linear demand equation (price function) for selling x items. (round to 4 decimal places)p(x) =It costs the business $6.8 per item to produce and they have $3,600 in overhead each mc(b) Find the linear Cost, and quadratic Revenue and Profit functions for producing/sellingx items: (round to 4 decimal places)C (x)= NumberR(x) =P(x) = Number=Numberx+ Numberx + Numberx² + Numberx+ Number+ Number(c) How many items should the company sell to break even? What price should they set toso?(lower quantity) They could sell Number(higher quantity) They could sell Numberitems at a price of $ Numberitems at a price of $ Number.Submit AssignmentQuit & Saveeach OReachBackQues

Answered: A business has found that it can sell…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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A business has found that it can sell 750 items if it sets its price to $63.61. However, if it
lowers its price to $45.95, it can sell 950 items.
(a) Find the linear demand equation (price function) for selling x items. (round to 4 decimal places)
p(x) =
It costs the business $6.8 per item to produce and they have $3,600 in overhead each mc
(b) Find the linear Cost, and quadratic Revenue and Profit functions for producing/selling
x items: (round to 4 decimal places)
C (x)
= Number
R(x) =
P(x) = Number
=
Number
x+ Number
x + Number
x² + Number
x+ Number
+ Number
(c) How many items should the company sell to break even? What price should they set to
so?
(lower quantity) They could sell Number
(higher quantity) They could sell Number
items at a price of $ Number
items at a price of $ Number.
Submit Assignment
Quit & Save
each OR
each
Back
Ques

Expert Solution

Step 1

Total revenue (TR) is defined as a total income earned by a firm from selling goods or services. Total cost (TC) is defined as the total expenses incurred by a firm while producing goods or services. Profit is maximized when the difference between the total revenue and total cost is maximized. Moreover, TR and TC is also helpful in the determination of breakeven point.

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