ABC manufacture produces two models , pump A and and RM60 to It cast RM40 to manufacture pump A produce pump B. The firm's marketing department estimates and that the deluxe at if pump A is priced at RMP, then manufacture Sell 45000 + 500 CP₁ - 2 P₂) Units 500 ( Pa-P₁) units of pump A of the pump B each year. profit? be pneed to maximize hould the item RM P₂, and How S pump B.

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ISBN:9780190931919
Author:NEWNAN
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Chapter1: Making Economics Decisions
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ABC manufactures produces two models
It cast Rm 40
manufacture pump A
A and
, pump
and RM60 to
to
produce pump B. The firm's marketing department estimates
if pump A is priced at RMP,
manufacture Sell
that
and
the deluxe at
500 ( Pa-P₁) units of pump A
500 CP₁-2P2) units of the pump B each year.
be pneed to maximize
profit?
RM P₂,
and
then
45000 +
How should the item
pump B.
Transcribed Image Text:ABC manufactures produces two models It cast Rm 40 manufacture pump A A and , pump and RM60 to to produce pump B. The firm's marketing department estimates if pump A is priced at RMP, manufacture Sell that and the deluxe at 500 ( Pa-P₁) units of pump A 500 CP₁-2P2) units of the pump B each year. be pneed to maximize profit? RM P₂, and then 45000 + How should the item pump B.
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