Answer:
Step-by-step explanation:
(a) R(x) = x(150 - 0.75x) => 150x - 0.75x²
(b) P(x) = R(x) - C(x) => 150x - 0.75x² - (2000 + 0.75x²)
so, P(x) = 150x - 2000 - 1.5x²
(c) Now, P '(x) = 150 - 3x = 0....at maximum
i.e. when x = 50 suits
(d) P(50) = 150(50) - 2000 - 1.5(50)²
=> 7500 - 2000 - 3750
i.e. £1750
(e) price --> 150 - 0.75(50) => 150 - 37.5
Hence, price per suit is £112.50 in order to maximise profits.