Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

(a) What price yields a maximum prot? Recall that prot is given by the function PEX) = xp C, where p is a demand function,

image text in transcribedimage text in transcribed
(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)

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

Introduction To Health Care Management

Authors: Sharon B. Buchbinder, Nancy H. Shanks

3rd Edition

9781284081015

Students also viewed these Mathematics questions