1. A company produces items at a cost to them of 110E per item. On top of that, there are fixed costs of 700,000E. The expected number of sales is modeled using the function 70,000 - 200p where p Euro is the shelf-price of an item (in the shop). Determine the optimal price per item p (in the shop) that will maximize the profit. Also, briefly comment on the opinion that the function describing the expected number of sales ought to be S-shaped.
   
   

Answer rating: 100% (QA)

dpdTotal Profitp400p920000p40092000230 These curves typically have four stages Stage 1 slope is small new product introduction slow growth of market s... View the full answer