Discover the best answers at Westonci.ca, where experts share their insights and knowledge with you. Join our Q&A platform and connect with professionals ready to provide precise answers to your questions in various areas. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
Sagot :
Assume the demand Q(P) is a linear function.
Q(390) = 1700
The slope = -200 /20 (The slope - demand line is always negative)
=-10
The point slope form of the equation is
Q - 1700 = -10 (P - 390)
Open the parenthesis
Q - 1700 = -10p + 3900
Q = -10p + 3900 + 1700
Q = -10p + 5600
Now solve for P
Q + 10P = 5600
10P = -Q + 5600
Divide through by 10
P = -1/10 Q + 560
Substitute Q = x
[tex]P(X)=-\frac{1}{10}x\text{ + 560}[/tex]The above is the demand function (price p as a function of units sold x).
a) The revenue function is defined as ;
R(P) = P * Q(P)
= p ( -10p + 5600)
= -10p² + 5600P
To maximaize the revenue,
Differentiate the above
R'(P) = -20P + 5600
Set R'(P)=0
-20P + 5600 =0
20P = 5600
Divide both-side by 20
P = 280
Hence, to maximize they should offer $280 to the buyers.
C)
C(x) is the cost to produce x television sets
C(Q(p)) is the cost to produce the demanded quantity
Thanks for stopping by. We strive to provide the best answers for all your questions. See you again soon. We appreciate your time. Please revisit us for more reliable answers to any questions you may have. We're glad you visited Westonci.ca. Return anytime for updated answers from our knowledgeable team.