Question
A market research department is recommending a new headphone set for MP3 players to the production and marketing department. Once marketing testing complete the market
A market research department is recommending a new headphone set for MP3 players to the production and marketing department. Once marketing testing complete the market research department presents the following demand equation: = 10 0.001 where x is the number of headphones that retailers are likely to buy at $p per set.
The financial department provides the cost function: () = 7000 + 2
(a) Find the marginal profit for 2000 headphones.
(b) Compute the approximate changes in profit if the number of headphones is increase from 2000 to 3100. Interpret your answer.
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