A manufacturer of a new patented product has found that he can sell 70 units a week to the customer if the price is $48. In error, the price was recently advertised at $78 and as a result only 40 units were sold in a week. The manufacturers fixed costs of production are $ 1710 a week and variable costs are $9 per unit. You are required to Recommend a unit price which would maximise profit and to find the quantity demanded and profit generated at that price.

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A:

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A:

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Q: Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers…

A: Find the answer below.

Q: Soft selling occurs when a buyer is skeptical of the usefulness of a product and the seller offers…

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Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.