EHA enterprises has been manufacturing 500 dishwashers a day ò selling them for $400 each. There has been very little profit, however, and an outside lconsultant is called into study this operation. He finds that the cost function is C(q)= q2 - 440q + 165000,provided at least 250 dishwashers are made daily

Question

EHA enterprises has been manufacturing 500 dishwashers a day ò selling them for $400 each. There has been very little profit, however, and an outside lconsultant is called into study this operation. He finds that the cost function is C(q)= q2 - 440q + 165000,provided at least 250 dishwashers are made daily

Find the profit
Find the maximum profit (do not use calculus)
What advice does he gives them?
The market changes so that the selling price for a dishwasher is $360. What should EHA enterprises do now?

Answer 1

1. profit = revenue - cost

P(q) = 400q - C(q)
2. max P at the vertex of P(q)
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