A company produces a given commodity. Production costs are $10 per unit. The demand function for...

A company produces a given commodity. Production costs are $10 per unit. The demand function for this commodity is given by q = −2p + 1200, where q is the quantity demanded, and p is the selling price per unit. (a) Find the cost function C(q), and rewrite is as a function of the selling price p (that is, replace q by q = −2p + 1200). (b) Find the revenue function as a function only of the selling prince p. (c) Find the proﬁt function for this company as a function only of the selling price p. (d) Find the selling price that maximizes the proﬁt function. (e) Using the selling price that maximizes proﬁt, ﬁnd the number of items that maximize proﬁt.

Expert Solution

Rahul Sunny answered 1 year ago

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