Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A product has a demand function defined by the relationship between the unit price, P, and quantity produced, D, where, P = $160 - 0.02D.

image text in transcribed
A product has a demand function defined by the relationship between the unit price, P, and quantity produced, D, where, P = $160 - 0.02D. A vendor estimates he can produce this prodcut at a variable cost of $30 per unit and a fixed monthly cost of operation of $25,000. Determine the following: 1. The monthly quantity of production that will maximize the total profit for the vendor, assuming that he can sell every unit produced. O A. 3,250 O B. 1,625 O C. 4,000 O D. 6,500 2. The average cost per unit at a production quantity of 584 units per month. O A. $72.81 O B. $30.00 O C. $42.86 O D. $148.32

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

Dynamic Business Law

Authors: Nancy Kubasek

1st Edition

0073524913, 9780073524917

More Books

Students also viewed these Economics questions