Question
. The marketing research and financial departments of a company estimate that at a price
of “P” dollars per unit, the weekly cost “C” and revenue “R” (in thousands of dollars) will be
given by the equations
𝐶 = 14 − 𝑃
𝑅 = 8𝑃 − 𝑃
2
Find prices for which the company:
a. Has a profit
b. Has a loss
c. Breaks even
of “P” dollars per unit, the weekly cost “C” and revenue “R” (in thousands of dollars) will be
given by the equations
𝐶 = 14 − 𝑃
𝑅 = 8𝑃 − 𝑃
2
Find prices for which the company:
a. Has a profit
b. Has a loss
c. Breaks even
Answers
oobleck
(a) R-C > 0
(b) R-C < 0
(c) R=C
now just plug in the definitions and solve for P.
(b) R-C < 0
(c) R=C
now just plug in the definitions and solve for P.