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An office supply company manufactures and sells X permanent markers per year at a price of...

An office supply company manufactures and sells X permanent markers per year at a price of P €/unit. The Price/Demand equation for the markers is: ? = 5 − 0.001?

1. Write the Revenues function (10%)
2. What level of production and what price should the company charge for the markers to maximize revenues?

The total cost of manufacturing is: ?(?) = 3000 + 2?

Write the Company’s Profit function
What level of production and what price should the company charge for the markers to maximize profits?
Draw a graph representing the above-mentioned situation

Now the government decides to tax the Company in 1€ for each marker produced. Taking into account this additional cost:

Write the company’s new Cost function
Write the company’s new Profit function
What level of production and what price should the company charge for the markers to maximize profits (with these new conditions)?

(Please don't skip questions 5, 6, 7, 8, I need especially them)

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Expert Solution

milcah answered 2 years ago

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