- 10 Marks
Question
Renes Trading Company sells qqq kente strips per month at ppp Ghana Cedis per kente strip. The demand function for kente strips is given by p=300−0.02qp = 300 – 0.02qp=300−0.02q. The kente strips cost GH¢30 per strip to manufacture. There are fixed costs of GH¢9,000 per month.
Required:
(i) Determine the price per kente strip that will maximize revenue. (4 marks)
(ii) Determine the quantity where profit is maximized. (4 marks)
(iii) Calculate the maximum profit. (2 marks)
Answer
(i)
ii)
iii)
- Topic: Elements of Calculus
- Series: NOV 2018
- Uploader: Joseph