Question 1
Let the demand function for a product be given by the function D(g): -1.5g + 220, where q is
the quantity of items in demand and D(q) is the price per item, in dollars, that can be charged
when q units are sold. Suppose fixed costs of production for this item are $3,000 and variable costs
are $3 per item produced. If 53 items are produced and sold, find the following:
A) The total revenue from selling 53 items (to the nearest penny).
Answer: $
B) The total costs to produce 53 items (to the nearest penny).
Answer: $
C) the total profits to produce 53 items ( to the nearest penny. Profits may or may not be negative)
Answer: $