Question

[-13 Points) DETAILS SESSCALC2 3.5.047. A manufacturer has been seling 1000 flat-screen TVs a week at $500 each. A market survey indicates that for each $10 rebate offered to the buyer, the number of TVs sold will increase by 100 per week (a) Find the demand function (price p as a function of units sold x). px) - (b) How large a rebate should the company offer the buyer in order to maximize its revenue? (If its weekly cost function is CX) - 61,000 + 120x, how should the manufacturer set the size of the rebate in order to maximize its profit? $

Answer 1

PLease rate the answer
Answer
a) p(X) = 600 -x/10
b) 200 $ per set
c) 360 $

Page No. Date : 120 ushi ag Demand function in Demand is linead funtion of price Q (500) = 1000 Slope (m) To - 1 -Too 10 -1 p{-500 lo x-loo lop - 5000 looo -85 6000 +X top 600o-X Jo 600 x = Р. 10



b) Revenue 6ovo-lo Se To boopp- to p = 600 t TO Me ximizing Revene dRidp d (6000p-10 p² ap GooD -20 op Goog - 202.50 300 p = +6000 +20 The company should offer rebate of (500-200) = 200


Page No Como c) +120 x 791 000 - 1200 102 6000 p-p 18,000 +1200 p C(X) = 61000 clp) - bloco + 120 (broo-lop) = 61.00 +720000 - 1200 p P Profit Revenue - cost PE - lop Maximizing d p = Р ap -20 pt7200 7200 7200 7810w +7200 = p= 20 = 360 $