Case Scenario/ Real World is television production company that manufactures movies. The market research department recommends that the company manufacture a new television series and presents the following demand equation x = 25000-50p, where x is the demand at $p per episode. Solve the demand equation for p and discuss the relevance of this information to the company. The financial department also provides the cost function C(x)= 18,000+500x. Analyse the revenue and profit function and identify what the marginal revenue and the marginal profit equation signifies. Determine the exact and approximate revenue from manufacturing the 31st television show. Advise Real World productions on any additional information that you may need that will assist them in future projects.
Case Scenario/ Real World is television production company that manufactures movies. The market research department recommends that the company manufacture a new television series and presents the following demand equation x = 25000-50p, where x is the demand at $p per episode. Solve the demand equation for p and discuss the relevance of this information to the company. The financial department also provides the cost function C(x)= 18,000+500x. Analyse the revenue and profit function and identify what the marginal revenue and the marginal profit equation signifies. Determine the exact and approximate revenue from manufacturing the 31st television show. Advise Real World productions on any additional information that you may need that will assist them in future projects.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:Case Scenario/Problem
Real World is television production company that manufactures movies. The
market research department recommends that the company manufacture a new
television series and presents the following demand equation x = 25000-50p,
where x is the demand at $p per episode.
Solve the demand equation for p and discuss the relevance of this information
to the company. The financial department also provides the cost function C(x)=
18,000+500x.
Analyse the revenue and profit function and identify what the marginal revenue
and the marginal profit equation signifies.
Determine the exact and approximate revenue from manufacturing the 31st
television show.
Advise Real World productions on any additional information that you may need
that will assist them in future projects.
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