Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. A vendor makes and sells x strings of beads at her souvenir store every month. The monthly cost and price-demand equations are, respectively, C(x)

4. A vendor makes and sells x strings of beads at her souvenir store every month. The monthly cost and price-demand equations are, respectively, C(x) = 0.00002x3 + 0.04x2 + 150x + 45000 x = 4000 - 200p

a) Given the information above

i. How many sets of beads should she manufacture each month to maximize her revenue?

ii. What is the maximum monthly revenue?

iii. How much should she charge for each set of beads to achieve maximum revenue?

b) Given the information above

i. How many sets of beads should she manufacture each month to maximize her profit?

ii. What is the maximum monthly profit?

iii. How much should the company charge for each set of beads to achieve maximum profit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project management

Authors: Harvey maylor

4th Edition

027370432X, 978-0273704324

More Books

Students also viewed these General Management questions

Question

Avoid evasiveness. Be direct with your answers when possible.

Answered: 1 week ago