# suppose a certain manufacturer has determined the price equation

**Question description**

Suppose a certain manufacturer has determined the price equation (demand equation) for a certain product to be p=2.25-000025x. each item cost $0.25 to make and has fixed costs of $15,000. Because of physical considerations (lack of building room) the manufacturer can produce a maximum of 100,000 units.

A. use the price equation to create a revenue equation for this manufacturer.

B. create the total cost equation for the manufacturer.

C. create a profit equation for the manufacturer.

D. determine the appropriate domain for x based on the manufacturers limitations.

E. how many units should the manufacturer produce in order to maximize profits?

F. does this value fit into the domain specified in part "c"? why or why not?

G. determine the maximum profit.

## Tutor Answer

Brown University

1271 Tutors

California Institute of Technology

2131 Tutors

Carnegie Mellon University

982 Tutors

Columbia University

1256 Tutors

Dartmouth University

2113 Tutors

Emory University

2279 Tutors

Harvard University

599 Tutors

Massachusetts Institute of Technology

2319 Tutors

New York University

1645 Tutors

Notre Dam University

1911 Tutors

Oklahoma University

2122 Tutors

Pennsylvania State University

932 Tutors

Princeton University

1211 Tutors

Stanford University

983 Tutors

University of California

1282 Tutors

Oxford University

123 Tutors

Yale University

2325 Tutors