telephone company is planning to introduce two new types of executive communications systems that it hopes to sell to its largest commercial customers. It is estimated that if the first type of system is priced at hundred dollars per system and the second type at y hundred dollars per system, approximately 40 -8x+5y consumers will buy the first type and 50 + 9x - 7y will buy the second type. If the cost of manufacturing the first type is $700 per system and the cost of manufacturing the second type is $3300 per system, what prices and y will maximize the telephone company's profit? First type:= hundred dollars per system. Second type: y= hundred dollars per system.

telephone company is planning to introduce two new types of executive communications systems that it hopes to sell to its largest commercial customers. It is estimated that if the first type of system is priced at hundred dollars per system and the second type at y hundred dollars per system, approximately 40 -8x+5y consumers will buy the first type and 50 + 9x - 7y will buy the second type. If the cost of manufacturing the first type is $700 per system and the cost of manufacturing the second type is $3300 per system, what prices and y will maximize the telephone company's profit? First type:= hundred dollars per system. Second type: y= hundred dollars per system.

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

Chapter8: Cost Analysis

Section: Chapter Questions

Problem 1.1CE

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