Question: Example Given the relationship between price and demand is: D=780-10p (units/month) == Fixed Cost (C) = RM800/month Variable Cost per Unit (cv) = RM30/unit

Example Given the relationship between price and demand is: D=780-10p (units/month) ==

Example Given the relationship between price and demand is: D=780-10p (units/month) == Fixed Cost (C) = RM800/month Variable Cost per Unit (cv) = RM30/unit Assumptions: All units produced will be sold Find: a) D* = number of units produced to maximise profit b) Maximum profit per month for the product; and c) Range of profitable demand (production) in units/month

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