An artist is planning to sell signed prints of her latest work. If 40 prints a offered for sale, she can charge $550 each. However, if she makes mor than 40 prints, she must lower the price of all the prints by $5 for each print in excess of the 40. That is, 41 prints reduce the price by $5, 42 prints reduce the price by $10, and so on. How many prints should the artist make to maximize her revenue? Let x be the number of prints and p the price per print. The demand equation is p = and the revenue function is R(x) = .

An artist is planning to sell signed prints of her latest work. If 40 prints a offered for sale, she can charge $550 each. However, if she makes mor than 40 prints, she must lower the price of all the prints by $5 for each print in excess of the 40. That is, 41 prints reduce the price by $5, 42 prints reduce the price by $10, and so on. How many prints should the artist make to maximize her revenue? Let x be the number of prints and p the price per print. The demand equation is p = and the revenue function is R(x) = .

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter3: Demand Analysis

Section: Chapter Questions

Problem 2.5CE

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