Engineering Economy (17th Edition)
Engineering Economy (17th Edition)
17th Edition
ISBN: 9780134870069
Author: William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher: PEARSON
Question
Book Icon
Chapter 2, Problem 11P

a.

To determine

The maximum profit per month related to the product

b.

To determine

The range of profitability demand during a month.

Blurred answer
Students have asked these similar questions
A company produces and sells a consumer product and is able to control the demand by varying the selling price. The approximate relationship between price and demand is 2700 5000 p = 38 + (for D>1) D² The company is seeking to maximize its profit. The fixed cost is $1,000 and the variable cost is $ 40 per unit. What is the number of units and total amount that should be produced and sold each month to maximize profit?
A company produces and sells hair dryers in a market where price (p) and demand (D) are related as follows: p = $35 + (3,000)/D – (4,800)/D² %3D The fixed cost (C;) is $800 per month and the variable cost per hair dryer (c,) is $38. a) How many hair dryers should be produced each month to maximize profits? b) How much is the maximum profit each month?
Cost, revenue, and profit are in dollars and x is the number of units. A firm knows that its marginal cost for a product is МС- 4x+ 25, that its marginal revenue is MR%3D 75 - 6х, and that the cost of production of 60 units is $8,880. (a) Find the optimal level of production. units (b) Find the profit function. P(x) = (c) Find the profit or loss at the optimal level.
Knowledge Booster
Background pattern image
Similar questions
SEE MORE QUESTIONS
Recommended textbooks for you
Text book image
Managerial Economics: Applications, Strategies an...
Economics
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:Cengage Learning