0
$\begingroup$

The 2 variables are messing with my head. Please help me make sense of this? I can't even get it set up right and I'm ready to throw my notebook out a window. Thanks in advance! Problem below:


The demand x for a certain product can be modeled by x = 100e^-0.02p per week.

The cost of supplying each unit is $25.

a) Write the PROFIT function as a function of price p

b) What is price p at which the maximum profit is realized?

$\endgroup$
1
$\begingroup$

The demand $x$ is a function of the price $p$: $$x = 100e^{-0.02}p$$ The profit per item is the price less the cost: $p-25$ and $x$ items are sold. Can you continue from here?

$\endgroup$
  • $\begingroup$ ok, so Profit = x(p-25), or (100e^-002p)(p-25) ? $\endgroup$ – Mahzsa May 5 at 22:07
  • $\begingroup$ Yes, that's right. You need to put $ signs around the MathJax for the formatting commands to take effect. Take a look at how I edited your question. $\endgroup$ – saulspatz May 5 at 22:50
  • $\begingroup$ Thank you for the help. I think I was a bit brain fried, it looks obvious to me now. Part b I found the derivative and critical number to determine the max profit. $\endgroup$ – Mahzsa May 5 at 23:40

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.