Tom K. answered 06/13/20
Knowledgeable and Friendly Math and Statistics Tutor
a) P = 1700 - 10(n - 100)
P = 2700 - 10n
R = nP = n(2700 - 10n) = 2700n - 10n2
dR/dn = 0
2700 - 20n = 0
20n = 2700
n = 2700/20 = 135
P = 2700 - 10n
P = 2700 - 10(135)
P = 1350
b) Cost = 80000 + 500n
Let Pr be Profit
Pr = R - C = 2700n - 10n2 - (80000 + 500n) = - 10n2 + 2200n - 80000
d Pr/dn = -20n + 2200
20n = 2200
n = 110
They will pay 2700 - 10n = 2700 - 10(110) = 2700 - 1100 = 1600
Pr = - 10n2 + 2200n - 80000 = -10(1102) + 2200(110) - 80000 = -121000 + 242000 - 80000 = 41000