A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately P = 150-0.1Q units where P is the price in dollars and Q is the quantity sold in a month. The fixed cost is $1000 per month and the variable cost is $30 per unit produced and sold. Calculate the maximum profit per month related to this product

A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately P = 150-0.1Q units where P is the price in dollars and Q is the quantity sold in a month. The fixed cost is $1000 per month and the variable cost is $30 per unit produced and sold. Calculate the maximum profit per month related to this product

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 7MC

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