Question: Consider a retailer selling a single item. Based on past experience, management estimates the relationship between demand, and price, p, by the linear function D=

Consider a retailer selling a single item. Based on past experience, management estimates the relationship between demand, and price, p, by the linear function D= 2,000 - 0.6p. At what price is revenue maximized. What if the retailer can charge two different prices? Can you find a set of prices that will increase profit in this case?

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