In: Advanced Math
1.) The demand model p=0.02x+19 gives the price per model (in dollars per novel) p when novels are sold. The cost (in dollars) for publishing x novels is given by C(x)=4x+19.
a.)How many novels should be sold in order for revenue to be a maximum?
b.)What is the maximum profit?
c.) Find the average cost when 50 novels are sold.
demand function is p=-0.02x+19
revenue function is given by
compare this function with
here we have
x coordinate of the vertex is
475 novels should be sold for maximum revenue
.
.
.
.
profit function is given by
compare this function with
here we have
x coordinate of the vertex is
.
maximum profit is $2793.5
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.
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an average cost function is given by
take x=50
the average cost for 50 novels is $4.38