A manufacture has been selling 1650 television sets a week at $450 each. A market survey indicates that for each $13 rebate offered to a buyer, the number of sets sold will increase by 130 per week.
a) Find the demand function p(x) , where x is the number of the television sets sold per week.
b) How large rebate should the company offer to a buyer, in order to maximize its revenue?
c) If the weekly cost function is 123750+150x , how should it set the size of the rebate to maximize its profit?
A) We know that when x = 1650, p(x) = 450 We also know that when p(x) decreases by 13, x increases by 130. That tells us... View the full answer