Mathematics - Calculus - Maximizing Profit
Profit -
A manufacturer has been selling lamps at $6 apiece, and at this price, consumers have been buying 3,000 lamps per month. The manufacturer wishes to raise the price and estimates that for each $1 increase in price, 1,000 fewer lamps will be sold each month. The manufacturer can produce the lamps at a cost of $4 per lamp. At what price should the manufacturer sell the lamps to generate the greatest possible profit?
© BrainMass Inc. brainmass.com March 4, 2021, 9:10 pm ad1c9bdddfhttps://brainmass.com/math/basic-calculus/mathematics-calculus-maximizing-profit-222606
Solution Preview
Let the manufacturer make x units of one dollar increase in price. Then his new revenue will
be R(x) = cost x quantity = (6 + ...
Solution Summary
A Complete, Neat and Step-by-step Solution is provided.
$2.49