Question: A product has a demand function defined by the relationship between the unit price, P, and quantity produced, D, where, P = $160 - 0.02D.

A product has a demand function defined by the relationship between the unit price, P, and quantity produced, D, where, P = $160 - 0.02D. A vendor estimates he can produce this prodcut at a variable cost of $30 per unit and a fixed monthly cost of operation of $25,000. Determine the following: 1. The monthly quantity of production that will maximize the total profit for the vendor, assuming that he can sell every unit produced. O A. 3,250 O B. 1,625 O C. 4,000 O D. 6,500 2. The average cost per unit at a production quantity of 584 units per month. O A. $72.81 O B. $30.00 O C. $42.86 O D. $148.32
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