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(Solved): A manufacturer has been selling 1700 television sets a week at $420 each. A market survey indicates ...
A manufacturer has been selling 1700 television sets a week at each. A market survey indicates that for each rebate offered to a buyer, the number of sets sold will increase by 190 per week. a) Find the demand function , where is the number of the television sets sold per week. b) How large rebate should the company offer to a buyer, in order to maximize its revenue? c) If the weekly cost function is , how should it set the size of the rebate to maximize its profit? Question Help: Video
Expert Answer
we use derivative rule to solve the problems Solution A manufacturer has been selling let x= 1700 television sets a week at let P(x)= $420 each. A market survey indicates that for each$19rebatenew price p(x)= offered to a buyer, the number of sets sold will increase by 190 per week.new sale = therefore using these two points Multiply both sides by . Simplify. Move all terms not containing to the right side of the equation.