Alexia your friend is a busy mandating company who is selling 1950 television sets a week at $540 each. A market survey indicates that for each $24 rebate offered to a buyer, the number of sets sold will increase by 240 per week. a) Find the linear demand function D(q), where q is the number of television sets sold per week., b) How large of a rebate should the manufacturer offer to a buyer, in order to maximize its revenue? The return is based on the initial price of $540 that they are currently charging. Additionally, take into account that the demand function expresses the relationship between price and quantity.) c) If the weekly cost function is 175500+180q, how should the manufacturer set the size of the rebate to maximize its profit?
Alexia your friend is a busy mandating company who is selling 1950 television sets a week at $540 each. A market survey indicates that for each $24 rebate offered to a buyer, the number of sets sold will increase by 240 per week.
a) Find the linear demand function D(q), where q is the number of television sets sold per week., b) How large of a rebate should the manufacturer offer to a buyer, in order to maximize its revenue? The return is based on the initial price of $540 that they are currently charging. Additionally, take into account that the demand function expresses the relationship between price and quantity.)
c) If the weekly cost function is 175500+180q, how should the manufacturer set the size of the rebate to maximize its profit?
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