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Suppose that for a certain product, during a certain month, the price-demand equation is x = 2500 – 100p, where x is the number of units that can be sold at a price of p dollars per unit, and the cost function (in dollars) is C(x) = 9,000 + 2x. a) Graph the price-demand equation, and complete the statement below. This price-demand equation is valid for

Suppose that for a certain product, during a certain month, the price-demand equation is x = 2500 – 100p, where x is the number of units that can be sold at a price of p dollars per unit, and the cost function (in dollars) is C(x) = 9,000 + 2x. a) Graph the price-demand equation, and complete the statement below. This price-demand equation is valid for

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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I need help with the last three questions please :)

Suppose that for a certain product, during a certain month, the price-demand equation is x = 2500 – 100p, where x is the number of units that can be sold at a price of p dollars per unit, and the cost function (in dollars) is C(x) = 9,000 + 2x. a) Graph the price-demand equation, and complete the statement below. This price-demand equation is valid for and b) Solve the price-demand equation for p as a function of x: c) Find the revenue function R(x) and the profit function P(x). d) Find the marginal profit function. Also find P'(1300) and describe what this value tells you.
Transcribed Image Text:Suppose that for a certain product, during a certain month, the price-demand equation is x = 2500 – 100p, where x is the number of units that can be sold at a price of p dollars per unit, and the cost function (in dollars) is C(x) = 9,000 + 2x. a) Graph the price-demand equation, and complete the statement below. This price-demand equation is valid for and b) Solve the price-demand equation for p as a function of x: c) Find the revenue function R(x) and the profit function P(x). d) Find the marginal profit function. Also find P'(1300) and describe what this value tells you.
Find P'(850), and use it to approximate the change in profit when x goes from 850 to 854. f) Graph the revenue and cost functions on the same coordinate system. Find the break-even points and indicate regions of loss and profit. g) Note that maximum profit would occur at the x value for which marginal revenue equals marginal cost. Find this profit-maximizing x value.
Transcribed Image Text:Find P'(850), and use it to approximate the change in profit when x goes from 850 to 854. f) Graph the revenue and cost functions on the same coordinate system. Find the break-even points and indicate regions of loss and profit. g) Note that maximum profit would occur at the x value for which marginal revenue equals marginal cost. Find this profit-maximizing x value.
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