A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 76 -0.1D units. The fixed cost is $800 per month and the variable cost $26 per unit produced. What number of units, D*,should be produced per month and sold to maximize the profit per month related to the product?

A company has established that the relationship between the sales price for one of its products and the quantity sold per month is approximately p = 76 -0.1D units. The fixed cost is $800 per month and the variable cost $26 per unit produced. What number of units, D*,should be produced per month and sold to maximize the profit per month related to the product?

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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