Question

A company’s market research department recommends the manufacture and marketing of a new headphone set for the iPhoneXS. iphone2.png After suitable test marketing, the research department presents the following demand function... p = 74 - 2q The financial department provides the cost function below... C(q) = 78 + 17q where $78 is the estimate of fixed costs (tooling and overhead) and $17 is the estimate of marginal costs per headphone set (materials, labor, marketing, transportation, storage, etc.). Find the price, per unit, that produces the maximum​ profit.

Answer 1

Even though a fraction of a part cannot be physically made ,I have not done any rounding off that number. I just went by pure mathematics. Hope this is fine. Do get back for any query.

Will appreciate feedback.