Question

Unendo wishes to maximize the weekly profit of producing and selling the game. Find the price, p, per game that generates maximum profit.

Answer 1

Answer:

Following are the solution to this question:

Step-by-step explanation:

Please find the complete question in the attached file.

The highest benefit is where the unit benefit equals the marginal income  

Marginal price = 17q  

Score of income=-0.05q  

MC = MR

MC=17    

MR =DERIVATIVE OF ($80q-0.05 q^2$)

     $=80-2 \times 0.05q\\\\=80-0.1q$

$\to MR=MC$

$80-0.1q=17\\\\80-17= 0.1q\\\\0.1q=63\\\\q= \frac{63}{0.1}\\\\q=630$

Retail prices calculation  

$\to P=80-630 \times 0.05$

       $=80 -31.5\\\\= 48.5$