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Problem

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Textbook ExpertVerified Tutor
16 Nov 2021

Given information

Given :- A manufacturer has been selling 1000 television sets a week at $450 each.

To find :-  If its weekly cost function is C(x)=68000+150x, how should the manufacturer set the size of rebate in order to maximize its profit?

Step-by-step explanation

Step 1.

The profit function  P(x) when x units are sold is modelled by, 

   P(x)=R(x)-C(x)

       =  

Differentiating on both sides , 

   

  Solve for P'(x)=0 , and simplified 

     

   

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