Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

When hotdogs are sold for $5, approximately 700 are sold. When the price is raised to $6, the quantity demanded drops to 500. The initial

When hotdogs are sold for $5, approximately 700 are sold. When the price is raised to $6, the quantity demanded drops to 500. The initial cost is $200 and the cost per hotdog is $1. Assume that the demand function is linear. How many hotdogs at what price will yield maximum profit? Let x be the number of hotdogs.

a) Find the demand function p(x) as a function of x.

b) Find the revenue function R as a function of x. c) Find the cost function C as a function of x. d) Find the profit function P as a function of x e) How many hotdogs at what price will yield a maximum profit?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

Students also viewed these Finance questions

Question

Your workings:

Answered: 1 week ago