Question

The demand function for a product is p = 60 - 2q where p is price (in dollars) per unit quantity, q (in cases). The fixed costs for the product are $70, and the variable cost per unit is $18. Find the marginal profit function and use it at q = 4 to estimate the profit/loss when 5.5 cases are produced. a) Profit of $105.00 b) Profit of $27.00 c) Profit of $165.00 d) Profit of $93.00

          The demand function for a product is p = 60 - 2q where p is price (in dollars) per unit quantity, q (in cases). The fixed costs for the product are $70, and the variable cost per unit is $18. Find the marginal profit function and use it at q = 4 to estimate the profit/loss when 5.5 cases are produced.
a) Profit of $105.00
b) Profit of $27.00
c) Profit of $165.00
d) Profit of $93.00

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The demand function for a product is p = 60 - 2q where p is price (in dollars) per unit quantity, q (in cases). The fixed costs for the product are 70, and the variable cost per unit is18. Find the marginal profit function and use it at q = 4 to estimate the profit/loss when 5.5 cases are produced.
a) Profit of 105.00
b) Profit of27.00
c) Profit of 165.00
d) Profit of93.00

Added by Shannon W.

Calculus: Early Transcendentals

James Stewart 8th Edition

Instant Answer

Solved by Expert Adi S

06/01/2023

Step 1

First, we need to find the revenue function. Revenue is the product of price and quantity, so R(q) = p * q. We are given the demand function p = 60 - 2q, so we can substitute this into the revenue function: R(q) = (60 - 2q) * q = 60q - 2q^2 Show more…

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