Question
An office supply company manufactures and sells X permanent markers per year at a price of P /unit. The Price/Demand equation for the markers is:
An office supply company manufactures and sells X permanent markers per year at a price of P /unit. The Price/Demand equation for the markers is: = 7 0.002 1- Write the Revenues function (10%) 2- What level of production and what price should the company charge for the markers to maximize revenues? (10%) The total cost of manufacturing is: () = 1000 + 2 3- Write the Companys Profit function (10%) 4- What level of production and what price should the company charge for the markers to maximize profits? (10%) 5- Draw a graph representing the above-mentioned situation (30%) Now the Government decides to tax the Company in 3 for each marker produced. Taking into account this additional cost: 6- Write the companys new Cost function (10%) 7- Write the companys new Profit function (10%) 8- What level of production and what price should the company charge for the markers to maximize profits (with these new conditions)? (10%)
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