Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A company manufacturers and sells x electric drills per month. The monthly cost and price-demand equations are C(x)=63000 + 40x p=220 - x/30 0
A company manufacturers and sellsxelectric drills per month. The monthly cost and price-demand equations are
C(x)=63000 + 40x
p=220 - x/30
0<=x<=5000
Find the production level that results in the maximum revenue.
Production level=?
Find the price that the company should charge for each drill in order to maximize profit.
Price=?
Suppose that a 5 dollar per drill tax is imposed. Determine the number of drills that should be produced and sold in order to maximize profit under these new circumstances.
Number of drills=?
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