You want to sell a certain number n of items in order to maximize your profit. Market research tells you that if you set the price at $1.50, you will be able to sell 5000 items, and for every 10 cents you lower the price below $1.50 you will be able to sell another 1000 items. Suppose that your fixed costs ("start-up costs'') total $2000, and the per item cost of production ("marginal cost'') is $0.50. Find the price to set per item and the number of items sold in order to maximize profit, and also determine the maximum profit you can get
You want to sell a certain number n of items in order to maximize your profit. Market research tells you that if you set the price at $1.50, you will be able to sell 5000 items, and for every 10 cents you lower the price below $1.50 you will be able to sell another 1000 items. Suppose that your fixed costs ("start-up costs'') total $2000, and the per item cost of production ("marginal cost'') is $0.50. Find the price to set per item and the number of items sold in order to maximize profit, and also determine the maximum profit you can get
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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You want to sell a certain number n of items in order to maximize your profit. Market research tells you that if you set the price at $1.50, you will be able to sell 5000 items, and for every 10 cents you lower the price below $1.50 you will be able to sell another 1000 items. Suppose that your fixed costs ("start-up costs'') total $2000, and the per item cost of production ("marginal cost'') is $0.50. Find the price to set per item and the number of items sold in order to maximize profit, and also determine the maximum profit you can get.
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