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Quantitative modelling
A company that manufactures radios has determined that retailers are likely to purchase x radios at a price of p(x) = 10 - x/1000 rand per unit. If the company's fixed costs are R5 000 and their variable cost is R2 per unit, determine the company's profit function:
[1] profit(x) = 10 - x/1000
[2] profit(x) = 10 - x/1000 - 5000 + 2x
[3] profit(x) = - x2/1000 + 8x - 5000
[4] profit(x) = 10 000 - x
[5] None of the above.
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