Posted by **Miranda** on Saturday, March 14, 2009 at 5:00pm.

A manufacture has been selling 1750 television sets a week at $540 each. A market survey indicates that for each $14 rebate offered to a buyer, the number of sets sold will increase by 140 per week.

a) Find the function representing the demand p(x), where x is the number of the television sets sold per week and p(x) is the corresponding price.

p(x)=-.1x+715

b) How large rebate should the company offer to a buyer, in order to maximize its revenue?

=182.5

c) If the weekly cost function is 157500 + 180 x, how should it set the size of the rebate to maximize its profit?

the answers to A and B are right but i don't know how to do part c, could someone explain how to find part c?

- maximizing profit -
**economyst**, Monday, March 16, 2009 at 9:43am
You would solve c) in nearly the same method you used to solve b). Always always always, maximize provits by setting marginal cost (MC) = marginal revenue (MR). MR is the first derivitive of total revenue. Since you got b) right, you probably correctly calculated MR = 715 - .2x. (Then you maximized by setting this equal to zero and solving for x -- correct??)

For c) set MR = MC. MC is the first derivitive of the Total cost function, so MC is simply 180.

Take it from here.

- maximizing profit -
**Anonymous**, Friday, October 12, 2012 at 9:26pm
how did you get part a

## Answer this Question

## Related Questions

- Calc - A manufacture has been selling 1300 television sets a week at $420 each. ...
- Calculus - A manufacture has been selling 1300 television sets a week at $420 ...
- Math 115 - A manufacture has been selling 1400 television sets a week at $480 ...
- math - A manufacture has been selling 1300 television sets a week at 450 each. A...
- Pre-Calculus - A manufacture has been selling 1050 television sets a week at 360...
- CALC AB - 1. For the given cost and demand functions, find the production level...
- Public Finance - Suppose the marginal social cost of television sets is $100. ...
- ALGEBRA - The profit made from the sale of tiles is found by subtracting the ...
- calculus - 6.A manufacturer of DVD players has been selling 800 each week at 150...
- Algebra - The profit made from the sale of tiles is found by subtracting the ...