A company manufactures a product in the United States and sells it in England. The unit cost of manufacturing is $52. The current exchange rate (dollars per pound) is 1.213. The demand function, which indicates how many units the company can sell in England as a function of price (in pounds) is of the power type, with constant 27556733 and exponent -2.5. A) Develop a model for the company's profit (in dollars) as a function of the price it charges (in pounds). Then use a data table to find the profit - maximizing price to the nearest pound. Assume that the price ranges from £45 to £100 in increments of £1. Round your answer for the maximum profit to the nearest dollar and your answer for the best price to the nearest pound. Find: 1. Maximum profit: S 2. Best price: £
A company manufactures a product in the United States and sells it in England. The unit cost of manufacturing is $52. The current exchange rate (dollars per pound) is 1.213. The demand function, which indicates how many units the company can sell in England as a function of price (in pounds) is of the power type, with constant 27556733 and exponent -2.5. A) Develop a model for the company's profit (in dollars) as a function of the price it charges (in pounds). Then use a data table to find the profit - maximizing price to the nearest pound. Assume that the price ranges from £45 to £100 in increments of £1. Round your answer for the maximum profit to the nearest dollar and your answer for the best price to the nearest pound. Find: 1. Maximum profit: S 2. Best price: £
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:A company manufactures a product in the United States and sells it in England. The unit cost
of manufacturing is $52. The current exchange rate (dollars per pound) is 1.213. The
demand function, which indicates how many units the company can sell in England as a
function of price (in pounds) is of the power type, with constant 27556733 and exponent
-2.5. A) Develop a model for the company's profit (in dollars) as a function of the price it
charges (in pounds). Then use a data table to find the profit - maximizing price to the nearest
pound. Assume that the price ranges from £45 to £100 in increments of £1. Round your
answer for the maximum profit to the nearest dollar and your answer for the best price to the
nearest pound. Find: 1. Maximum profit: $_ 2. Best price: £
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