Question

Your marketing department has determined that the price you can expect to sell the appliances for...

Your marketing department has determined that the price you can expect to sell the appliances for is approximated by the demand curve p =400e^( –0.0006D) + 75.

Your setup cost to produce up to 10000 appliances per month is $50,000 and the incremental cost per appliance is $50. Plot profit as a function of demand and determine the optimal value of demand.

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