A company estimates that it can sell 2,000 units each month of its product if it prices each unit at $65. However, its monthly number of sales will increase by 10 units for each $0.20 decrease in price. The company has fixed costs of $450. The cost to make each unit is $4.50. Find the level of production that maximizes the company's profit. They should produce units at a price of $ which will yield a profit of $

A company estimates that it can sell 2,000 units each month of its product if it prices each unit at $65. However, its monthly number of sales will increase by 10 units for each $0.20 decrease in price. The company has fixed costs of $450. The cost to make each unit is $4.50. Find the level of production that maximizes the company's profit. They should produce units at a price of $ which will yield a profit of $

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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