Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

A company sells its products in a market where the market price, p, is linked to the quantity sold, q, by the linear equation p=80q.

image text in transcribed
A company sells its products in a market where the market price, p, is linked to the quantity sold, q, by the linear equation p=80q. a) Calculate the market price if the company sells 30 units. What is the revenue equation and the revenue if company sells 30 units? ( 3 marks) Further the company incurs fixed costs of $200 and an additional cost of $14 for each unit produced. b) What is the cost equation? How much will it cost to produce 30 units? (3 marks) c) What is the profit equation? What profit will the company make from producing and selling 30 units? ( 3 marks) d) Calculate the number of units that will maximize the profit What is the corresponding market price that will maximize profit? What is the maximum profit (4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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