An electromechanical machine manufacturer has a demand function for his machines: P(q) = 5,500 - 20q, where "P" represents Selling Price in $ and "q" represents number of machines sold in a given period. Additionally, it is known that Cost Function is given by: C(q) = 500q + 5q² a) How many machines must be sold in a period to obtain a profit of $500,000? b) How many machines must be sold to obtain a MAXIMUM profit per period and what would be MAXIMUM revenue achieved?
An electromechanical machine manufacturer has a demand function for his machines: P(q) = 5,500 - 20q, where "P" represents Selling Price in $ and "q" represents number of machines sold in a given period. Additionally, it is known that Cost Function is given by: C(q) = 500q + 5q² a) How many machines must be sold in a period to obtain a profit of $500,000? b) How many machines must be sold to obtain a MAXIMUM profit per period and what would be MAXIMUM revenue achieved?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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