Question
upstudy study bank question image url

A company manufactures and sells cellphones per week. The weekly price-demand and cost equations are given below.
(A) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly revenue? What is the maximum weekly revenue?
The company should produce 600 phones each week at a price of . .
(Round to the nearest cent as needed.)
The maximum weekly revenue is . (Round to the nearest cent as needed.)
(B) What price should the company charge for the phones, and how many phones should be produced to maximize the weekly profit? What is the maximum weekly profit?
The company should produce phones each week at a price of .
(Round to the nearest cent as needed.)

Ask by Mcguire Best. in the United States
Mar 24,2025

Upstudy AI Solution

Tutor-Verified Answer

Answer

The company should produce 470 cellphones each week at a price of $365.00. The maximum weekly profit is $90,450.00.

Solution

Sign in to Unlock Answers for Free!

A Learning Platform Trusted by Millions of Real Students and Teachers.

star-icon Unlock

Answered by UpStudy AI and reviewed by a Professional Tutor

Extra Insights

To maximize the weekly profit, you first want to determine the profit equation, which is given by , where is the revenue and is the cost. Since and the price can be derived from the demand equation, you need to first determine in terms of .
After calculating the suitable values, you find the production level that leads to maximum profit and then determine the corresponding price. Typically, this point occurs where the marginal revenue equals the marginal cost. You would plug in your values to find the exact numbers here.
Further, once you compute correctly, you likely find that the optimal production amount is around phones at a price of , leading to a maximum profit of roughly after adjusting for costs. Remember to round your final figures to the nearest cent as requested!
Exploring the historical development of similar economic models is fascinating! The relationship between supply, demand, and pricing can be traced back to classical economists like Adam Smith and David Ricardo. Their work laid the groundwork for understanding market dynamics, ensuring that firms can strategically price their products based on consumer behavior. This historical context helps us appreciate the complex interplay of economic principles that guide modern business decisions.
For those interested in digging deeper, consider looking into “The Wealth of Nations” by Adam Smith or “Principles of Economics” by Alfred Marshall. These classic texts provide insights into the economic theories that formed the basis for pricing strategies and market behaviors. Additionally, contemporary books like “Freakonomics” and “The Lean Startup” offer fun and modern takes on economic principles and how they apply in today’s rapidly changing markets. Happy reading!

Try Premium now!
Try Premium and ask Thoth AI unlimited math questions now!
Maybe later Go Premium
Study can be a real struggle
Why not UpStudy it?
Select your plan below
Premium

You can enjoy

Start now
  • Step-by-step explanations
  • 24/7 expert live tutors
  • Unlimited number of questions
  • No interruptions
  • Full access to Answer and Solution
  • Full Access to PDF Chat, UpStudy Chat, Browsing Chat
Basic

Totally free but limited

  • Limited Solution
Welcome to UpStudy!
Please sign in to continue the Thoth AI Chat journey
Continue with Email
Or continue with
By clicking “Sign in”, you agree to our Terms of Use & Privacy Policy