TimerNotesuateFeedback Prin Course Contents »HW24:HW24:P3_36_IntroEFoTV_d.proble

Question

TimerNotesuateFeedback Prin Course Contents »HW24:HW24:P3_36_IntroEFoTV_d.problem tes Evaluate FeedbackPrin A shop sells two competing brands of socks, Levis and Gap. Each pair of socks is obtained at a cost of 6 dollars per pair. The manager estimates that if he sells the Levis socks for dollars per pair and the Gap socks for y dollars per pair, then consumers will buy 50-4z - 2u pairs of Levis socks and 1 +5x - ^u pairs of Gap socks. How should the manager set the prices so that the profit will be maximized? Round your answers to the nearest cent Submit Answer Tries 0/10

Explanation / Answer

Find profit function as

P(x,y) =x(50-4x-2y)+y(1+5x-(7/2)y) -(6x+6y)

Find partial derivative as

Px = -8x +3y +44

Py= 3x -7y -5

Now to find critical point, solve Px =0 and Py= 0

-8x +3y +44 =0

3x -7y -5 =0

Using algebra, we can solve this to obtain

x =6.23

y = 1.96

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

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