A manufacture has been selling 1400 television sets a week at $450 each. A market survey indicates that for each $22 rebate offered to a buyer, the number of sets sold will increase by 220 per week. a) Find the demand function p(x), where x is the number of the television sets sold per week. p(x) = b) How large rebate should the company offer to a buyer, in order to maximize its revenue? c) If the weekly cost function is 105000 + 150x, how should it set the size of the rebate to maximize its profit?

A manufacture has been selling 1400 television sets a week at $450 each. A market survey indicates that for each $22 rebate offered to a buyer, the number of sets sold will increase by 220 per week. a) Find the demand function p(x), where x is the number of the television sets sold per week. p(x) = b) How large rebate should the company offer to a buyer, in order to maximize its revenue? c) If the weekly cost function is 105000 + 150x, how should it set the size of the rebate to maximize its profit?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A manufacture has been selling 1400 television sets a week at $450 each. A market survey
indicates that for each $22 rebate offered to a buyer, the number of sets sold will increase by
220 per week.
a) Find the demand function p(x), where x is the number of the television sets sold per week.
p(x) =
b) How large rebate should the company offer to a buyer, in order to maximize its revenue?
$
c) If the weekly cost function is 105000 + 150x, how should it set the size of the rebate to
maximize its profit?
$
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