Question

A craftsman can sell 10 jewelry sets for $500 each. He knows

Answer 1

Answer:15

Step-by-step explanation:

Given

Craftsman sell 10 Jewelry set for $500 each

For each additional set he will decrease the price by $ 25

Suppose he sells n set over 10 set

Earning$=\text{Price of each set}\times \text{no of set}$

Earning $=(500-25n)(10+n)$

$E=5000+500n-25n^2-250n$

differentiate to get the maximum value

$\frac{dE}{dn}=-50n+250$

Equate $\frac{dE}{dn}$ to get maximum value

$-50n+250=0$

$n=\frac{250}{50}$

$n=5$

Thus must sell 5 extra set to maximize its earnings.