Answered step by step
Verified Expert Solution
Question
1 Approved Answer
(2) Delilah Office Supply Limited (Delilah) manufactures and sells paper shredders to its customers. The price-demand equation for these shredders is y = 60 0.04Q
(2) Delilah Office Supply Limited (Delilah) manufactures and sells paper shredders to its customers. The price-demand equation for these shredders is y = 60 0.04Q , where y is the price per shredder and Q is the number of sold shredders Delilah could produce at most 1,000 shredders. The cost of manufacturing Q paper shredders by Delilah is C(Q) = 8,000 + 10Q (a) Find an expression for the profit function in terms of Q, i.e. P(Q). (b) Find the derivative P'(Q). (c) By using (b), what is the company's maximum profit? What should the company charge for each shredder, and how many shredders should be sold? (d) The government decided to tax additional $4 for each sold shredder. Considering this additional expense, what is the company's maximum profit? What should the company charge for each shredder, and how many shredders should be sold
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started