Question: A commodity has a demand function modeled by p = 118 - 0.5x and a total cost function modeled by C = 40x + 35.75,


A commodity has a demand function modeled by p = 118 - 0.5x and a total cost function modeled by C = 40x + 35.75, where x is the number of units. (a) What unit price (in dollars) yields a maximum profit? $ X per unit (b) When the profit is maximized, what is the average cost (in dollars) per unit? (Round your answer to two decimal places.) $ 40.46 per unit
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
