3 years ago

The quantity demanded x for a product is inversely proportional to the cube of the price p for

1 answer:

6 0

X = k/p^3
125 = k/10^3 = k/1000
1000 x 125 = k
k = 125000

x = 125000/p^3

The profit is given by G = px - (125 + 2x) = p(125000/p^3) - 125 - 2(125000/p^3) = 125000/p^2 - 250000/p^3 - 125
For maximum profit:
dG/dp = 0
dG/dp = -250000/p^3 + 750000/p^4 = 0
750000 - 250000p = 0
p = 750000/250000 = 3

Therefore the price that will yeaild maximum profit is $3.

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anastassius [24]

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Tatiana [17]

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