2. The relationship between price and demand per month for a consumer product is p = 3500 -1.1D1S where p is the price per unit in dollars and D is the demand in units. The fixed cost is $300 per month and the variable cost is $4.00 per unit. a. What is the optimal number of units that should be produced and sold per month? b. What is the maximum profit per month?

2. The relationship between price and demand per month for a consumer product is p = 3500 -1.1D1S where p is the price per unit in dollars and D is the demand in units. The fixed cost is $300 per month and the variable cost is $4.00 per unit. a. What is the optimal number of units that should be produced and sold per month? b. What is the maximum profit per month?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 1QR

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