Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A manufacturing company sells high-quality wireless headphones through a chain of specialty shops. The demand equation for these headphones is: P = 800 - 1000

image text in transcribed
image text in transcribed
A manufacturing company sells high-quality wireless headphones through a chain of specialty shops. The demand equation for these headphones is: P = 800 - 1000 where P is the selling price (in $ per unit) and Q is the quantity demanded (in thousands of headphones). The company's total cost function is given by C = 800*ln(Q+5) - 1500 a. (2 marks) At Q =5, the revenue is |:] (thousand dollars) and the profit is |:] (thousand dollars) (Round your answer to 2 decimal places) b. (2 marks) For which value of Q is there unit elasticity of demand for the headphones? (Round your answer to 2 decimal places) |:] thousand headphones c. (1 mark) How many headphones must be sold to maximise profit? (Round your answer to 2 decimal places) thousand headphones D d. (1 mark) What is the value of the second derivative of the profit function at the maximum found in the previous question? (Round your answer to 2 decimal places) E

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these Mathematics questions