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(Solved): A company estimates that it can sell 5,000 units each month of its product if it prices each unit ...



A company estimates that it can sell 5,000 units each month of its product if it prices each unit at \( \$ 80 \). However, it

A company estimates that it can sell 5,000 units each month of its product if it prices each unit at . However, its monthly number of sales will increase by 5 units for each decrease in price. The company has fixed costs of . The cost to make each unit is . Find the level of production that maximizes the company's profit. They should produce units at a price of which will yield a profit of


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Let the demand function isp=ax+bWhen p=80,x=5,0005,000=80a+b (1)Whenp=80?0.15=79.85,x=5,000+5=5,0055,005=79.85a+b (2)Solving equation
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