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There is no other information. 15. (12 points) You own a company which makes tennis racquets. You have a fixed cost of 10 (rent for
There is no other information.
15. (12 points) You own a company which makes tennis racquets. You have a fixed cost of 10 (rent for your factory, etc.) and a cost of 2 per racquet (cost of materials, etc.) Market research indicates that in order to sell a racquets the price you should charge is given by P() = 12 - 2. Price (a) Write down the revenue function R ). th (b) Write down the cost function C(:). (c) Write down the profit function P(x). (d) How many racquets should you make to obtain maximum profit? How much is your maximum profit? (Hint: your answer to part (c) should be a quadratic function. Where does this function have it's maximum?)Step by Step Solution
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