What is the appropriate (non-linear) objective function for this scenario (hint: distances are euclidean)? b. Zoey’s Catnip Toys faces the following relationship between price (p) and demand (v): v = 2000 − 200p. The fixed cost is $500 and variable cost is $1. Write an expression for the total profit. c. What price should Zoey charge to maximize profit in question b.?
An entrepreneurial individual of the Houston metropolitan area is interested
in securing a new franchise for Mason Donuts. Ideally this franchise would be
fresh, delicious donuts delivered to the doorstep. The main cities and anticipated
demand (in thousands per day) are shown in the table below.
a. What is the appropriate (non-linear) objective
b. Zoey’s Catnip Toys faces the following relationship between price (p) and demand (v): v = 2000 − 200p. The fixed cost is $500 and variable cost is $1. Write an expression for the total profit.
c. What price should Zoey charge to maximize profit in question b.?
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