Solve the problems below that pertain to the profit from the sale of items.
(a) Marketing tells you that if you set the price of an item at $10 then you will be unable to sell it, but that you can sell 560 items for each dollar below $10 that you set the price. Suppose your fixed costs total $4000, and your marginal cost is $2 per item. What is the most profit you can make?
$ . when the price is $ . .

(b) How are your answers to the problem affected if the cost per item for the x items, instead of being simply $2, decreases below $2 in proportion to x (because of economy of scale and v

Question

Solve the problems below that pertain to the profit from the sale of items. 
(a) Marketing tells you that if you set the price of an item at $10 then you will be unable to sell it, but that you can sell 560 items for each dollar below $10 that you set the price. Suppose your fixed costs total $4000, and your marginal cost is $2 per item. What is the most profit you can make?
 $ . when the price is $ . .

 (b) How are your answers to the problem affected if the cost per item for the x items, instead of being simply $2, decreases below $2 in proportion to x (because of economy of scale and v

anonymous · Answer

let x = the amount of dollars below 10