Question
A company produces items at a cost to them of 110E per item. On top of that, there are fixed costs of 700,000E. The expected
- A company produces items at a cost to them of 110E per item. On top of that, there are fixed costs of 700,000E. The expected number of sales is modeled using the function 70,000 - 200p where p Euro is the shelf-price of an item (in the shop). Determine the optimal price per item p (in the shop) that will maximize the profit. Also, briefly comment on the opinion that the function describing the expected number of sales ought to be S-shaped.
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dpdTotal Profitp400p920000p40092000230 These curves typically have four stages Stage 1 slope is small new product introduction slow growth of market s...Get Instant Access to Expert-Tailored Solutions
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Mathematical Applications for the Management Life and Social Sciences
Authors: Ronald J. Harshbarger, James J. Reynolds
11th edition
9781337032247, 9781305465183, 1305108043, 1337032247, 1305465180, 978-1305108042
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