Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturer has been selling 1000 television sets a week at$500each. A market survey indicates that for each $10 rebate offered to the buyer, the

A manufacturer has been selling 1000 television sets a week at$500each. A market survey indicates that for each $10 rebate offered to the buyer, the number of sets sold will increase by100per week. Round your answers to the nearest dollar.

(a) Find the demand function (price as a function of units sold).

p(x) =

(b) How large a rebate should the company offer the buyer in order to maximize its revenue?

$

(c) If the company experiences a cost ofC(x) =62,000+130x, how should the manufacturer set the size of the rebate in order to maximize its profit?

$

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Numerical Analysis

Authors: Richard L. Burden, J. Douglas Faires

9th edition

538733519, 978-1133169338, 1133169333, 978-0538733519

More Books

Students also viewed these Mathematics questions