Posted by **jen** on Monday, April 6, 2009 at 10:54pm.

a firm is planning to manufacture a new product. the sales department estimates the quanity that can be sold depends on the selling price. as the selling price is increased, the quantity that can be sold decreases. they estimate:

P=$35-0.02Q where P=selling price/unit and Q=quantity sold/unit.

on the other hand, management estimates that the average cost of manufacturing and sellling the product will decrease as the quantity sold increases. they estimate:

C=$4Q+$8000.

where C=cost to produce and sell Q/year.

The firm's management wishes to produce and sell the product at the rate that will maximize profit, that is, income minus cost will be a maximum. what quantity should the decision makers plan to produce and sell each year.

I know the answer is 775 units and i have to take derivatives of something because it's asking for a maximum, but how do i put the two equations together.

- economics -
**lol**, Tuesday, April 7, 2009 at 9:57am
your mama's house

## Answer This Question

## Related Questions

- economics - a firm is planning to manufacture a new product. the sales ...
- Maths - A company is planning to manufacture and sell a new headphone set. After...
- Managerial Economics - Skateoards sell for $70. During the past year they sold 4...
- adult education - Skateoards sell for $70. During the past year they sold 4,000 ...
- Pre-Algebra B - The selling price of a bicycle that had sold for $220 last year ...
- Economics - We're looking at the market for cat food. When the price is $10, the...
- math - In economics, revenue Upper R is defined as the amount of money derived ...
- ECONOMICS - Data Collected in the imaginary econmomy of Chipolaysia reveals that...
- Calculus - A manufacturer produces bolts of fabric with a fixed width. The ...
- calculus - A manufacturer produces bolts of fabric with a fixed width. The ...

More Related Questions