Question
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?
$
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