Question
A company sells two products, X and Y, and the demand for each product is affected by their respective prices. The price of product X
A company sells two products, X and Y, and the demand for each product is affected by their respective prices. The price of product X is $100 and the price of product Y is $50. The demand equation for product X is Qx = 1000 - 5Px and the demand equation for product Y is Qy = 2000 - 20Py. The company has a production cost of $30 per unit for both products.
a) What is the total revenue function for the company?
b) Determine the price of each product that will maximize the total revenue of the company.
c) What is the maximum revenue that the company can generate?
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Management and Cost Accounting
Authors: Colin Drury
8th edition
978-1408041802, 1408041804, 978-1408048566, 1408048566, 978-1408093887
