The manufacturer has been selling 1000 television sets a week at given value $500 each. The market survey points that for each $10 rebate offered to buyer, number of sets sold will increase by 100 per week.
i) Determine linear demand function (price as the function of units sold).
ii) How large the rebate must company offer buyer to maximize its revenue?
iii) If company experiences the cost of C(x) = 76,000 + 110x, how must manufacturer set size of rebate to maximize its profit?