Unendo wishes to maximize the weekly profit of producing and selling the game. Find the price, p, per game that generates maximum profit.

Question

asked Mar 19, 2021 212k views

1 Answer

Sviatoslav Oleksiv · Answer 1 · 2021-03-25T11:12:47+0000

Answer:

Following are the solution to this question:

Explanation:

Please find the complete question in the attached file.

The highest benefit is where the unit benefit equals the marginal income

Marginal price = 17q

Score of income=-0.05q

MC = MR

MC=17

MR =DERIVATIVE OF (
80q-0.05 q^2 )

$=80-2 * 0.05q\\\\=80-0.1q$

$\to MR=MC \\\\$

$80-0.1q=17\\\\80-17= 0.1q\\\\0.1q=63\\\\q= (63)/(0.1)\\\\q=630$

Retail prices calculation

$\to P=80-630 * 0.05$

$=80 -31.5\\\\= 48.5$