Question
A manufacture has been selling 1450 television sets a week at $390 each. A market survey indicates that for each $22 rebate offered to a
A manufacture has been selling 1450 television sets a week at $390 each. A market survey indicates that for each $22 rebate offered to a buyer, the number of sets sold will increase by 220 per week. a) Find the function representing the demand (), where is the number of the television sets sold per week and () is the corresponding price. ()= b) How large rebate should the company offer to a buyer, in order to maximize its revenue? dollars c) If the weekly cost function is 94250+130, how should it set the size of the rebate to maximize its profit?
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