The Rolling Creek Textile Mill makes denim. The monthly fixed cost is $8,000, and the variable cost per yard of denim is $0.35. Price is related to demand, according to the following linear equation: v = 17,000 - 5,666p Develop the nonlinear profit function for the textile mill and determine the optimal price, the optimal volume, and the maximum profit per month.
The Rolling Creek Textile Mill makes denim. The monthly fixed cost is $8,000, and the variable cost per yard of denim is $0.35. Price is related to demand, according to the following linear equation: v = 17,000 - 5,666p Develop the nonlinear profit function for the textile mill and determine the optimal price, the optimal volume, and the maximum profit per month.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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The Rolling Creek Textile Mill makes denim. The monthly fixed cost is $8,000, and the variable
cost per yard of denim is $0.35.
equation: v = 17,000 - 5,666p Develop the nonlinear profit function for the textile mill and determine the optimal price, the
optimal volume, and the maximum profit per month.
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