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Question # 2 Blue Ray Manufacturer's Limited utilizes statistical analyses to determine the optimal price for its sales to customers and the effectiveness of their
Question #
Blue Ray Manufacturer's Limited utilizes statistical analyses to determine the optimal
price for its sales to customers and the effectiveness of their pricing decisions. During
July the company was provided with the following demand and cost functions by
a statistical research company:
where is the unit selling price and is the quantity of units in thousands
where TC is total costs in thousands of dollars
Required:
a Determine the optimal output at which profit is maximized for July
b Find the price that maximizes profit.
c Determine the maximum sales revenue.
d Calculate the maximum profit.
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