A company produces and sells hair dryers in a market where price (p) and demand (D) are related as follows: p = $35 + (3,000)/D – (4,800)/D² The fixed cost (C;) is $800 per month and the variable cost per hair dryer (c,) is $38. How many hair dryers should be produced each month to maximize profits?
A company produces and sells hair dryers in a market where price (p) and demand (D) are related as follows: p = $35 + (3,000)/D – (4,800)/D² The fixed cost (C;) is $800 per month and the variable cost per hair dryer (c,) is $38. How many hair dryers should be produced each month to maximize profits?
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 23RQ: Which costs are measured on per-unit basis: fixed costs, average cost, avenge variable cost,...
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