A company produces a special new type of TV. The company has fixed costs of $486,000, and it costs $1400 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2300. Assume a linear demand. First, determine the cost function for the TV company. C(q) = Write in the form mq+b. The problem says to assume linear demand. This means the price (demand) function will be in the form p(g) = mq + b. In order to find this function, we need to find m and b, as with other linear function problems. Using the above information, find the demand function. p(q) = Write in the form mq+b. Let's use the demand function to solve the following problem. If the company sets the price of the TV to be $3800, how many can it expect to sell? It can expect to sell TVs. If necessary, round to the nearest whole number. Finally, use the demand function to find the revenue function. Remember, revenue is price times quantity. R(q) =

Advanced Engineering Mathematics
10th Edition
ISBN:9780470458365
Author:Erwin Kreyszig
Publisher:Erwin Kreyszig
Chapter2: Second-order Linear Odes
Section: Chapter Questions
Problem 1RQ
Question
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A company produces a special new type of TV. The company has fixed costs of $486,000, and it costs $1400 to produce each TV. The company projects that if it charges
a price of $2600 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2300. Assume a linear demand.
First, determine the cost function for the TV company.
C(q) = Write in the form mq+b.
The problem says to assume linear demand. This means the price (demand) function will be in the form p(g) = mq + b. In order to find this function, we need to find m and
b, as with other linear function problems. Using the above information, find the demand function.
p(q) =
Write in the form mq+b.
Let's use the demand function to solve the following problem.
If the company sets the price of the TV to be $3800, how many can it expect to sell?
It can expect to sell TVs. If necessary, round to the nearest whole number.
Finally, use the demand function to find the revenue function. Remember, revenue is price times quantity.
R(q) =D
Transcribed Image Text:A company produces a special new type of TV. The company has fixed costs of $486,000, and it costs $1400 to produce each TV. The company projects that if it charges a price of $2600 for the TV, it will be able to sell 750 TVs. If the company wants to sell 800 TVs, however, it must lower the price to $2300. Assume a linear demand. First, determine the cost function for the TV company. C(q) = Write in the form mq+b. The problem says to assume linear demand. This means the price (demand) function will be in the form p(g) = mq + b. In order to find this function, we need to find m and b, as with other linear function problems. Using the above information, find the demand function. p(q) = Write in the form mq+b. Let's use the demand function to solve the following problem. If the company sets the price of the TV to be $3800, how many can it expect to sell? It can expect to sell TVs. If necessary, round to the nearest whole number. Finally, use the demand function to find the revenue function. Remember, revenue is price times quantity. R(q) =D
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