Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Drives Co. sells portable hard drives. They can sell 600 drives when the price is $85/drive, and they can sell 720 drives when the price

Drives Co. sells portable hard drives. They can sell 600 drives when the price is $85/drive, and they can sell 720 drives when the price is $55/drive. If x represents the number of drives sold, determine the following.

(a) What is Drive Co.'s revenue function? R(x) =

(b) What is the price per drive (in dollars) when revenue is maximized? $

(c) What is the maximum profit (in dollars) made from the sale of these drives if Drive Co. incurs production costs of $175 per drive and has fixed costs of $675? $

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Solution To find the revenue function we can use the formula Revenue Price x Quantity Using the given information we can form two equations 600 x 85 5... 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

Microeconomics

Authors: Douglas Bernheim, Michael Whinston

2nd edition

73375853, 978-0073375854

More Books

Students also viewed these Accounting questions

Question

If what is the value of m + n? (3ab)(2ab) 8ab = 3ab"

Answered: 1 week ago