QUIZ 1
The market research department of a company recommended to management that the
company...
Mathematics, 31.07.2021 15:30 addisonrausch
QUIZ 1
The market research department of a company recommended to management that the
company manufacture and market a promising product on the market. After extensive surveys, the
research departmeni backed up the recommendation with the demand equation;
x = f(p) = 6,000 β 30p
where x is the number of units that retailers are likely to buy per month at GHSp per unis. From the
finance department, the following cost equation was obtained:
C = g(x) = 72,000 + 60%
Assuming revenue equation is R = xp
(a) Find the profit equation equations in terms of p only.
(5 marks)
(b) Calculate the price (s) and the quantity demanded at which the company would break oven.
(6 marks)
(c) Ar what price does the company maximize prot?
15 marks)
Answers: 3
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