An exporter of handbags has just entered a new market. This exporter faces the following relationship between the price of handbags and the demand for them: P=15+ 4,800 D 2,500 D² D>0 where P is the price per unit and D is the demand per month. The exporter wants to maximize his profit. The fixed cost is P2055 per month and the variable cost #33 per unit. How many handbags should be produced and sold each month, in order to maximize profit? Round your answer to 0 decimal places.
An exporter of handbags has just entered a new market. This exporter faces the following relationship between the price of handbags and the demand for them: P=15+ 4,800 D 2,500 D² D>0 where P is the price per unit and D is the demand per month. The exporter wants to maximize his profit. The fixed cost is P2055 per month and the variable cost #33 per unit. How many handbags should be produced and sold each month, in order to maximize profit? Round your answer to 0 decimal places.
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter3: Demand Analysis
Section: Chapter Questions
Problem 2.5CE
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![An exporter of handbags has just entered a new market. This exporter faces the following relationship between the price of
handbags and the demand for them:
P=15+
4.800
D
2.500
D²
, D>0
where P is the price per unit and D is the demand per month. The exporter wants to maximize his profit. The fixed cost is $2055 per
month and the variable cost #33 per unit. How many handbags should be produced and sold each month, in order to maximize
profit?
Round your answer to 0 decimal places.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3c8c479f-fbd9-4d52-ac79-44e7c1dcc91a%2F89b45bed-9f32-4c2a-a384-9622c30151bc%2F97bduh_processed.png&w=3840&q=75)
Transcribed Image Text:An exporter of handbags has just entered a new market. This exporter faces the following relationship between the price of
handbags and the demand for them:
P=15+
4.800
D
2.500
D²
, D>0
where P is the price per unit and D is the demand per month. The exporter wants to maximize his profit. The fixed cost is $2055 per
month and the variable cost #33 per unit. How many handbags should be produced and sold each month, in order to maximize
profit?
Round your answer to 0 decimal places.
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