A large company in the communication and publishing industry has quantified the relationship between the price of one of its products and the demand for this product as Price = 150 - 0.02 x Demand for an annual printing of this particular product. The fixed costsper year (ie., per printing) = $46,000 and the variable cost per unit=$40. What is the maximum profit that can be achieved? What is the unit price at this point of optimal demand? Demand is not expected to be more than 3,000 units per year.The maximum profit that can be achieved is $. (Round to the nearest dollar.)The unit price at the point of optimal demand is $ per unit. (Round to the nearest cent.)Enter your answer in each of the answer boxes.

Demand function is:- P=150-0.02D TR= Price×Demand…

Answered: A large company in the communication…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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