(a) What price yields a maximum prot? Recall that prot is given by the function PEX) = xp C, where p is a demand function,
(a) What price yields a maximum prot? Recall that prot is given by the function PEX) = xp C, where p is a demand function, C is a total cost function, and x is the total number of units sold. We are given the demand function p = 103 0.5.x and the total cost function C = 30x + 32.?5. Thus, we can state the profit function we need to maximize below. Step 3 (b) When the profit is maximized, what is the average cost per unit? We are given the cost function C = 30x + 32.75 and have determined that profit is maximized when x = 73 units are sold. Recall that the average cost per unit is found by dividing the cost function by the number of units, x. C ( x ) = _ 30x + 32.75 = X Evaluate the average cost per unit when x = 73. (Round your answer to two decimal places.) 30(73) + 32.75 C (73 ) = 73 X To conclude, state the average cost (in dollars) per unit when the profit is maximized. (Round your answ two decimal places.) S X per unit Submit Skip (you cannot come back)
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