The Nike accounting firm analyzes the price-demand relationship toconclude that x thousand shoes will sell if offered for a unit price (in dollars) of p(x) = 130−0.1x. Suppose further that the total cost of production was tracked to be $530,000 up until production of the first thousand shoes, and that this cost increased linearly to $560,000 by the time of production ofthe 2000th shoe. Find the following quantities, and interpret your results(describe what these quantities represent). a) Marginal revenue when x= 100 b) Average profit when x= 500
The Nike accounting firm analyzes the price-demand relationship toconclude that x thousand shoes will sell if offered for a unit price (in dollars) of p(x) = 130−0.1x. Suppose further that the total cost of production was tracked to be $530,000 up until production of the first thousand shoes, and that this cost increased linearly to $560,000 by the time of production ofthe 2000th shoe. Find the following quantities, and interpret your results(describe what these quantities represent). a) Marginal revenue when x= 100 b) Average profit when x= 500
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
Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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The Nike accounting firm analyzes the price-demand relationship toconclude that x thousand shoes will sell if offered for a unit price (in dollars) of p(x) = 130−0.1x. Suppose further that the total cost of production was tracked to be $530,000 up until production of the first thousand shoes, and that this cost increased linearly to $560,000 by the time of production ofthe 2000th shoe. Find the following quantities, and interpret your results(describe what these quantities represent).
a) Marginal revenue when x= 100
b) Average profit when x= 500
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