David can sell 200 printers per day if he charges $70 each. He determines that he...

David can sell 200 printers per day if he charges $70 each. He determines that he will sell an additional 50 printers per day for each $10 reduction in price.

a. Find a linear demand function, p in terms of x.

b. Find the revenue function.

c. How much should he charge for his printers to maximize his revenue?

d. What would be David’s maximum revenue?

e. Suppose David has a fixed cost of $1000 and a marginal cost of $60. Find his cost function.

f. Find his profit function.

g. Find the number of printers to sell to maximize his profit.

h. Find the maximum profit.

i. Find the price to charge to maximize the profit.

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Expert Solution

milcah answered 1 year ago

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