d) A retailer has determined that the annual cost of purchasing, owning and maintaining one of its products behaves according to the function. C= f(h) = 20,000 + 0.5q + 80,000 q Where q is the size (in units) of each order purchased from supplier i. What order quantity (q) results in minimum annual cost? ii. What is the minimum annual cost? e) The demand function for a product is; q=f(p) 35000 -0.05p where q is the quantity demanded in units and p is the price in dollars i. 11. Determine the value of p which will result in maximum total revenue What is the maximum total revenue?
d) A retailer has determined that the annual cost of purchasing, owning and maintaining one of its products behaves according to the function. C= f(h) = 20,000 + 0.5q + 80,000 q Where q is the size (in units) of each order purchased from supplier i. What order quantity (q) results in minimum annual cost? ii. What is the minimum annual cost? e) The demand function for a product is; q=f(p) 35000 -0.05p where q is the quantity demanded in units and p is the price in dollars i. 11. Determine the value of p which will result in maximum total revenue What is the maximum total revenue?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Transcribed Image Text:d) A retailer has determined that the annual cost of purchasing, owning and maintaining one of its
products behaves according to the function.
C= f(h) = 20,000 + 0.5q + 80,000
q
Where q is the size (in units) of each order purchased from supplier
i.
What order quantity (q) results in minimum annual cost?
ii. What is the minimum annual cost?
e) The demand function for a product is;
q=f(p) 35000 -0.05p
where q is the quantity demanded in units and p is the price in dollars
i.
11.
Determine the value of p which will result in maximum total revenue
What is the maximum total revenue?
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