Question
A manufacturer has been selling 1000 flat-screen TVs a week at $350 each. A market survey indicates that for each $10 rebate oered to the
A manufacturer has been selling 1000 flat-screen TVs a week at $350 each. A market survey indicates that for each $10 rebate oered to the buyer, the number of TVs sold will increase by 100 per week. a) Find the demand function (price p as a function of units sold x). b) How large a rebate should the company oer the buyer in order to maximize its revenue? c) If its weekly cost function is C (x) = 60, 000 + 120x how should the manufacturer set the size of the rebate in order to maximize its profit?
I have gotten 2 different answers from you guys so I am comparing
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