Question

Marketing research has found that at a price of $179.95 per unit, sales would be 175,000 units each week. If that price were to be raised by $10 per unit then sales would decrease by 5,000 units each week. Production costs for this item are $54 per unit with weekly overhead costs of $225,000. Let x represent the number of units.

d. Find the linear cost function for the situation described.

e. Find the profit function

g. Find the marginal cost function

h. Find the marginal profit function

I think g and h is about the first derivative of each d and e. Actually, I got the answers for both d and e, but not sure about them.

For d, I got 54x+225000 / For e, I got -0.108x^3 + 28167.3x^2 + 119238750x

Are they correct?

Answer 1

Marginal is about derivatives.

Part d) is correct. Part e) is incorrect.

How are you getting x^3 term? You revenue function must be wrong.

Order of question is same as written. Part f) is missing.