An electric power-generating company charges different rates for residential and business users. (You might consider some reasons

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An electric power-generating company charges different rates for residential and business users. (You might consider some reasons why this would be so.) The cost of producing the electricity is the same for all users and equals $1000 in fixed costs plus an additional $200 for each unit produced. If residential customers use x units of electricity, they pay p = 1200 – 2x dollars for each unit. On the other hand, commercial customers pay q = 1000–y dollars for each of the y units of electricity they use. What price should the power company charge each type of customer to maximize profit? What is the maximum profit?

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A First Course In Mathematical Modeling

ISBN: 9781285050904

5th Edition

Authors: Frank R. Giordano, William P. Fox, Steven B. Horton

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