Question: A small calculator company is doing a study to determine how to price one of its new products. The theory is that the income r

A small calculator company is doing a study to determine how to price one of its new products. The theory is that the income r from a product is a function of the market price p, and one of the managers has proposed that the quadratic model r = p•(3000 - 10p) provides a realistic approximation to this function.

(a) What was the manager’s reasoning in devising this formula?

(b) What is the significance of the value p = 300 in this investigation?

(c) Assume that this model is valid and figure out the best price to charge for the calculator. How much income for the company will the sales of this calculator provide?

(d) If the management is going to be satisfied as long as the income from the new calculator is at least $190000, what range of prices p will be acceptable?

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