A lash adjuster keeps pressure constant on engine valves, thereby increasing fuel efficiency in automobile engines. the relationship between price (p ) and monthly demand (d ) for lash adjusters made by the wicks company is given by this equation: dequals= (2 comma 4002,400minus-p ) / 0.100.10. what is the demand (modifyingabove upper d with caretd ) when total revenue is maximized? what important data are needed if maximum profit is desired?

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Business

Adolfo Ochoa

14 November, 05:36

A lash adjuster keeps pressure constant on engine valves, thereby increasing fuel efficiency in automobile engines. the relationship between price (p ) and monthly demand (d ) for lash adjusters made by the wicks company is given by this equation: dequals= (2 comma 4002,400minus-p ) / 0.100.10. what is the demand (modifyingabove upper d with caretd ) when total revenue is maximized? what important data are needed if maximum profit is desired?

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Answers (1)

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Hector Shepherd · Answer 1

Answer and Explanation:

Relationship between price and demand:

D = (2400 - p) / (0.100)

p = 2400 - 0.100*D

then:

Total revenue = p*D

= 2400*D - 0.100*D^2

for a maximum revenue:

dR/dD = 0

2400 - 0.100*2D = 0

D = 12000

this is considered a demand

for maximum profit, the initial cost of automobile engines should be less required.