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A bakery sells 350 fruit tarts each month for $3.25 each. The results of a survey indicate that sales of fruit tarts would increase
A bakery sells 350 fruit tarts each month for $3.25 each. The results of a survey indicate that sales of fruit tarts would increase by 80 per month for each $0.10 decrease in price. a) Determine the demand, or price function. b) Determine the revenue function. c) Determine the marginal revenue function. d) Solve R'(x)=0. How many fruit tarts must be sold in order to maximum revenue? e) What price maximizes the revenue?
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