A lash adjuster keeps the pressure constant on engine valves, increasing automobile engines' fuel efficiency. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation: D=(2,000-p)/0.10. a) What is the demand (D) when total revenue is maximized? b) What important data are needed if maximum profit is desired?

A lash adjuster keeps the pressure constant on engine valves, increasing automobile engines' fuel efficiency. The relationship between price (p) and monthly demand (D) for lash adjusters made by the Wicks Company is given by this equation: D=(2,000-p)/0.10. a) What is the demand (D) when total revenue is maximized? b) What important data are needed if maximum profit is desired?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Problem 1
A lash adjuster keeps the pressure constant on engine valves, increasing automobile engines' fuel
efficiency. The relationship between price (p) and monthly demand (D) for lash adjusters made by
the Wicks Company is given by this equation: D=(2,000-p)/0.10.
6
a) What is the demand (D) when total revenue is maximized?
b) What important data are needed if maximum profit is desired?
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