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MArishka [77]
3 years ago
15

The cost, in dollars, to produce x designer dog leashes is C ( x ) = 8 x + 3 , and the price-demand function, in dollars per lea

sh, is p ( x ) = 88 − 2 x Find the profit function. P ( x ) = Find the number of leashes which need to be sold to maximize the profit. Find the maximum profit. Find the price to charge per leash to maximize profit. What would be the best reasons to either pay or not pay that much for a leash?
Business
1 answer:
steposvetlana [31]3 years ago
6 0

Answer:

<em><u>P (x)   = 80x - 2x^2 - 3</u></em>

Explanation:

The Profit function is the revenue minus the cost.

Revenue = Price x Quantity =  X.px = x(88-2x) = 88x - 2x^2

Therefore the profit function P (x):  

P (x)  =  88x - 2x^2 - (8x+3)

<em><u>P (x)   = 80x - 2x^2 - 3</u></em>

<em><u /></em>

To maximise profit we use the 1st order condition: dP(x)/dq = 0

Therefore,  80 - 4x = 0

4x = 80

x = 20

So 20 leashes maximises profit.

P(x) = 80(20) - 2(20)^2 - 3

<em><u> P = $803  </u></em>

<em><u /></em>

The price to charge would be:

<u><em>p (x) = 88 - 2(20) = $48</em></u>

<u><em>The best reason would be that the price is a bit expensive for a leash so most people would not buy it.</em></u>

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<h3>What is Service?</h3>

Services are referred to as a type of goods that is offered to someone in terms of facilities like the one received in a restaurant or shopping mall. It is a type of commodity or product that is intangible in nature, one can only feel it.

When a country's money is convertible into another country's currency, the number of products and services that can be purchased in each country at the same price is equal. This is known as purchasing power parity.

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Therefore, option C  is appropriate.

Learn more about  Purchasing power parity, here:

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The complete question is

he number of units of developing country currency required to purchase a basket of goods and services in a developing country that costs one dollar in the U.S. is given by?

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or if you are having a hard time.
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