To calculate: The amount that shop must charge per surfboard to maximize the amount of money earned and the maximum amount that the shop can earn per month.
Answer to Problem 8CT
The shop should charge
The maximum amount the shop can earn per month is
Explanation of Solution
Given information: Shop sells
Concept Used: The
Calculation:
Let
The number of surfboards sold per month are given by
Hence, the profit function is given by:
Comparing with general equation we get;
The maximum of this occurs at
Substitute this value in profit function:
The maximum amount that the shop can earn per month is
The shop can charge
Chapter 2 Solutions
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