How must manufacturer set size of rebate to maximize profit


A manufacturer has been selling 1000 television sets a week at $450 each. A market survey indicates that for each $10 rebate offered to the buyer, the number of sets sold will increase by 100 per week.

(a) Find the demand function.

(b) How large a rebate should the company offer the buyer in order to maximize its revenue?

(c) If its weekly cost function is C(x)=68,000+150x, how should the manufacturer set the size of the rebate in order to maximize its profit?

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