A company estimates that the relationship between unit price and demand per month for a new product is approximated by p= $100- $0.10D. The company can produce the product by making the fixed costs $ 15,972 per month and the estimated variable cost is $45 per unit. What is the optimal demand?

A company estimates that the relationship between unit price and demand per month for a new product is approximated by p= $100- $0.10D. The company can produce the product by making the fixed costs $ 15,972 per month and the estimated variable cost is $45 per unit. What is the optimal demand?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

A company estimates that the
relationship between unit price and
demand per month for a new product
is approximated by p= $100-
$0.10D. The company can produce
the product by making the fixed
costs $15,972 per month and the
estimated variable cost is $ 45 per
unit. What is the optimal demand?
Express answer in whole number.

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