Answer: 139.65 or 25.34.
Explanation:
The revenue function will be:
= Price × Quantity
= P × (7,000 - 50p)
= 7000p - 50p²
The coat function is given as:
C = 2,000 + 25q
C = 2000 + 25(7000 - 50p)
C = 2000 + 175000 - 1250p
C = 177000 - 1250p
Then, we'll equate the revenue function to the cost function. This will be:
7000p - 50p² = 177000 - 1250p
-50p² + 7000p + 1250p - 177000 = 0
-50p² + 8250p - 177000 = 0
Divide through by -50
p² - 165 + 3540 = 0
Solving to get the value of P will then give us 139.65 or 25.34.