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Q: A small manufacturer wholesales leather jackets to a number of specialty sto…

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Wize University Calculus 1 Textbook > Applications of Differentiation for Business & Econ

Marginal Concepts In Economics

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Q:\bf{Q:} A small manufacturer wholesales leather jackets to a number of specialty stores. The monthly demand from these stores for the jackets is described by the demand equation
p=400−80qp=400-80q
Here pp is the wholesale price, in dollars per jacket, and qq is the monthly demand, in thousands of jackets. Note that the demand equation makes no sense if q≥5q ≥ 5. The manufacturer's marginal cost function is given by the equation

dCdq=560q+5\frac{dC}{dq}=\frac{560}{q+5}
Determine the number of jackets that must be sold per month to maximize monthly profit. (You do not need to justify that your answer provides the maximal profit)
More Marginal Concepts In Economics Questions:
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Law of Demand
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Law of Demand
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Marginal Concepts in Economics
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(a) Find price-demand relationship.
(b) Find the profit function.