MATH 157 - D100A SSIGNMENT #10
Due date: Wednesday April 04, 2012
Instructor Questions accompanying paper Assignment # 10 Solution
Directions: Print double sided, write your solutions to both questions directly on this
page, place immediately after cover page and staple together!
Marks: An answer without a detailed solution process will be awarded zero marks!
Q1: The weekly demand for the Pulsar 25-inch colour console television is given by the demand
p = ▯0:05x + 600 (0 ▯ x ▯ 12;000)
where p denotes the wholesale unit price in dollars and x denotes the quantity demanded. The weekly
total cost function associated with manufacturing these sets is given by
C(x) = 0:000002x ▯ 0:03x + 400x + 80;000
where C(x) denotes the total cost incurred in producing x sets. Find the level of production that will
yield a maximum proﬁts for the manufacturer.
R(x) = p ▯ x = ▯0:05x + 600x:
MR = ▯0:1x + 600:
MC = 0:000006x ▯ 0:06x + 400:
Set MR=MC, we get
0:000006x ▯ 0:06x + 400 = ▯0:1x + 600
0:000006x + 0:04x ▯ 200 = 0
Hence x = 2▯0:00006