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Representing the number of items sold at a particular price

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Reference no: EM131028946

You are given two points representing the number of items sold at a particular price. From these two points a linear demand functions is constructed. You are also given information on the cost of each item so that you can construct a cost function. From the demand function you can form a revenue function and finally the profit function is the revenue minus the cost. This profit function can the be maximized by taking the derivative at setting it to zero.

Reference no: EM131028946

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