A company manufactures and sells x cellphones per week. The weekly price-demand

Question

A company manufactures and sells x cellphones per week. The weekly price-demand and cost equations are given below, p = 400 -0.1x and C(x) = 15,000 + 135x What price should the company charge for the phones, and how many phones should be produced to maximize the weekly revenue? What is the maximum weekly revenue? The company should produce phones each week at a price of The maximum weekly revenue is What price should the company charge for the phones, and how many phones should be produced to maximize the weekly profit? What is the maximum weekly profit? The company should produce phones each week at a price of The maximum weekly profit is

Explanation / Answer

a)revenue =p*x

revenue R=(400-0.1x)*x=400x-0.1x2

maximum revenue ==>dR/dx =0

==>400-0.2x=0

==>x=2000

p=(400-0.1*2000)=200

company should produce 2000phones at price of 200$

maximum revenue =400*2000-0.1*20002 =400000$

b)profit P=revenue -cost

P=400x-0.1x2-15000-135x

maximum profit ==>dP/dx =0

==>400-0.2x-0-135=0

==>0.2x=265

==>x=1325

p=400-0.1*1325=267.5

company should produce 1325phones at price of 267.5$

maximum profit =P=400*1325 -0.1*13252-15000-135*1325=160562.5$

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.