I'm in an applied calculus course and my instructor assigned a set of problems basically designed to make us brainstorm and put together multiple aspects of calculus to form our solutions. Any help you can provide on this problem would be greatly appreciated.
Phillip, the proprietor of a vineyard, has figured out that he could sell 10,000 bottles of wine at a price of $15 per bottle. Furthermore that for every $0.10 increase in the bottle price, 500 fewer bottles are sold. Phillip also calculated that the cost to produce a bottle of wine is $3 per bottle, plus the fixed costs of $2500.
(a) Find the demand relation, revenue, cost and profit functions for Phillip.
(b) What price should Phillip price the bottles of wine to maximize his revenue?
(c) What price should Phillip price the bottles of wine to maximize his profit?
2006-10-07
10:07:04
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4 answers
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asked by
mtbskier81
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