A manufacturer produces gizmos at a cost of P5 each. The manufacturer computes that if each gizmo sells for x pesos, (15 – x) gizmos will be sold. What is the manufacturer's profit function T(x)? What price x should the manufacturer charge to maximize profit? (Hint: If the profit function is concave, the maximum point is the point where the slope is zero.)

A manufacturer produces gizmos at a cost of P5 each. The manufacturer computes that if each gizmo sells for x pesos, (15 – x) gizmos will be sold. What is the manufacturer's profit function T(x)? What price x should the manufacturer charge to maximize profit? (Hint: If the profit function is concave, the maximum point is the point where the slope is zero.)

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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