produces g - x) gizmo nufacturer
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:A manufacturer produces gizmos at a cost of P5 each. The manufacturer computes that if each gizmo sells
for x pesos, (15 – x) gizmos will be sold. What is the manufacturer's profit function a(x)? What price
x should the manufacturer charge to maximize profit? (Hint: If the profit function is concave, the
maximum point is the point where the slope is zero.)
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