Introduction to Management Science 12th Edition by Bernard Taylor

تمرين 5

The Grady Tire Company recaps tires. The weekly fixed cost is $2,500, and the variable cost per tire is $9. Price is related to demand, according to the following linear equation:
v = 200 - 4.75 p
Develop the nonlinear profit function for the tire company and determine the optimal price, the optimal volume, and the maximum profit per week.