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A major retailer of appliances does some market research and finds that when the price of a type of appliance is set at $1,040.00, they can sell 300 appliances. When they lower price to $665.00, they can sell 800 appliances. Assuming the major retailer has a monopoly on the market, use this price data to construct a price demand curve and then the corresponding revenue. R(x) = dollars Suppose the per unit average cost is C(x) = 215 + 3x dollars Construct the profit function from the above functions. Then find the price p to the nearest cent that maximizes the profit. Hint: find that maximizes profit, then put that a into price formula. dollars

A major retailer of appliances does some market research and finds that when the price of a type of appliance is set at $1,040.00, they can sell 300 appliances. When they lower price to $665.00, they can sell 800 appliances. Assuming the major retailer has a monopoly on the market, use this price data to construct a price demand curve and then the corresponding revenue. R(x) = dollars Suppose the per unit average cost is C(x) = 215 + 3x dollars Construct the profit function from the above functions. Then find the price p to the nearest cent that maximizes the profit. Hint: find that maximizes profit, then put that a into price formula. dollars

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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A major retailer of appliances does some market research and finds that when the price of a type of appliance is set at $1,040.00, they can sell 300 appliances. When they lower price to $665.00, they can sell 800 appliances. Assuming the major retailer has a monopoly on the market, use this price data to construct a price demand curve and then the corresponding revenue. R(x): = Р Suppose the per unit average cost is C(x) = 215 + 3x dollars Construct the profit function from the above functions. Then find the price p to the nearest cent that maximizes the profit. Hint: find that maximizes profit, then put that a into price formula. dollars dollars
Transcribed Image Text:A major retailer of appliances does some market research and finds that when the price of a type of appliance is set at $1,040.00, they can sell 300 appliances. When they lower price to $665.00, they can sell 800 appliances. Assuming the major retailer has a monopoly on the market, use this price data to construct a price demand curve and then the corresponding revenue. R(x): = Р Suppose the per unit average cost is C(x) = 215 + 3x dollars Construct the profit function from the above functions. Then find the price p to the nearest cent that maximizes the profit. Hint: find that maximizes profit, then put that a into price formula. dollars dollars
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