Discussion:
Scenario: A camera manufacturer producing a low cost digital camera has found that:
Price-demand function p(x)=94.8-5x
Revenue function R(x)=x*p(x)=x(94.8-5x)
When price is in dollars and x is in millions of cameras sold, and revenue is in millions of dollars.
a) What is the marginal revenue equation?
b) Find the output to the nearest thousand cameras that will produce the maximum revenue.
c) What is the maximum revenue?
d) If the cost function is C(x)=156+19.7x (C(x) in millions of dollars for selling x millions of cameras); what is the profit function?
e) Find the output x to the nearest thousand cameras that will produce the maximum profit.