A product has a demand function defined by the relationship between the unit price, P, and quantity produced, D, where, P = $160 -0.03D. A vendor estimates he can produce this prodcut at a variable cost of $50 per unit and a fixed monthly cost of operation of $40,000. Determine the following: X 1. The monthly quantity of production that will maximize the total profit for the vendor, assuming that he can sell every unit produced. OA. 3,666 OB. 917 O C. 1,833 OD. 2,667 2. The average cost per unit at a production quantity of 521 units per month. OA. $76.87 OB. $50.00 OC. $126.78 OD. $144.37
A product has a demand function defined by the relationship between the unit price, P, and quantity produced, D, where, P = $160 -0.03D. A vendor estimates he can produce this prodcut at a variable cost of $50 per unit and a fixed monthly cost of operation of $40,000. Determine the following: X 1. The monthly quantity of production that will maximize the total profit for the vendor, assuming that he can sell every unit produced. OA. 3,666 OB. 917 O C. 1,833 OD. 2,667 2. The average cost per unit at a production quantity of 521 units per month. OA. $76.87 OB. $50.00 OC. $126.78 OD. $144.37
Elements Of Electromagnetics
7th Edition
ISBN:9780190698614
Author:Sadiku, Matthew N. O.
Publisher:Sadiku, Matthew N. O.
ChapterMA: Math Assessment
Section: Chapter Questions
Problem 1.1MA
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Step 1: To determine the monthly quantity of production and average cost per unit.
To determine:
(a) the monthly quantity of production
(b) average cost per unit at production of 521 units per month
Given:
The relationship between a unit price and the quantity produced is
variable cost is
monthly cost of operation is
the profit produced is the difference between the revenue and the cost.
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