(1) A company in Scotland bottles sparkling water. The fixed cost per month to produce bottled water is$35,000, and the variable cost is $0.2 per bottle. Price is related to demand according to the followingequation:v = 4,000 – 1.1pDetermine the optimal price using a nonlinear profit analysis.(2) A tailor on Savile Row is producing suits. The fixed cost per month producing suits is $13,000, and thevariable cost is $140 per suit. Price is related to demand, according to the following equation.v = 600 – 1.5pDetermine the optimal price using a nonlinear profit analysis.

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(1) A company in Scotland bottles sparkling water. The fixed cost per month to produce bottled water is $35,000, and the variable cost is $0.2 per bottle. Price is related to demand according to the following equation: v = 4,000 – 1.1p Determine the optimal price using a nonlinear profit analysis.

(1) A company in Scotland bottles sparkling water. The fixed cost per month to produce bottled water is $35,000, and the variable cost is $0.2 per bottle. Price is related to demand according to the following equation: v = 4,000 – 1.1p Determine the optimal price using a nonlinear profit analysis.

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter11: Profit Maximization

Section: Chapter Questions

Problem 11.4P

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