MATHEMATICS · Multi-part · AP · Calculus AB · Analytical Applications of Differentiation · Analytical Applications of Differentiation
Problem
A company faces the demand function q=200−4p, where p is the price per unit in dollars and q is the quantity sold. Its manufacturing cost is 30q+1000 dollars.
(a) Determine the price that maximizes profit with no tax.
(b) A per-unit tax of 2 is imposed on the company. Determine the new profit-maximizing price.