Problem

A toy manufacturer estimates the demand for a game to be 2000 per year. Each game costs...

A toy manufacturer estimates the demand for a game to be 2000 per year. Each game costs $3 to manufacture, plus setup costs of $500 for each production run. If a game can be stored for a year for a cost of $2, how many should be manufactured at a time and how many production runs should there be to minimize costs?

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Solutions For Problems in Chapter 3.5