A tire manufacturer finds the following relationship between price (p) and demand (Q): p equals620minus0.5Q. If the fixed costs for manufacturing tires is $47,188, and the variable costs are $102 per unit,What is the optimal demand?
Added by Jose Angel F.
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The price (p) is given by the equation \( p = 620 - 0.5Q \). Revenue (R) is calculated as price times quantity, so: \[ R = p \times Q = (620 - 0.5Q) \times Q = 620Q - 0.5Q^2 \] Show more…
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