Amanufacture has been selling 1700 television sets a week at $450 each. a market survey indicates that for each $27 rebate offered to a buyer, the number of sets sold will increase by 270 per week.
a) find the linear demand function d ( q ) , where q is the number of the television sets sold per week. d ( q ) = (use q as your variable)
b) how large rebate should the company offer to a buyer, in order to maximize its revenue? (note that you are asked about a rebate! the rebate is based on the original price of $450 they are charging right now. also, you will need to remember that the demand function gives the relationship between the price and the quantity.)
c) if the weekly cost function is 127500 + 150 q , how should it set the size of the rebate to maximize its profit? $