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Maximize his profit 
20071112 

From apoorva: During the summer months Terry makes and sells necklaces on the beach. Last summer he sold the necklaces for $10 each and his sales averaged 20 per day. When he increased the price by $1, he found that he lost two sales per day.
a. Find the demand function, assuming it is linear.
b. If the material for each necklace costs Terry $6, what should the selling price be to maximize his profit? Answered by Penny Nom. 





Maximizing profits II 
20071005 

From a student: Suppose there are three firms with the same demand function. The function is Q=100040P. Each firm also a a cost function.
Firm 1: 4000+5Q,
Firm 2: 3000+5Q,
Firm 3: 3000+7Q.
What price should each firm charge if it wants to maximize profits. Answered by Harley Weston. 


