A manufacturer sells a product whose price-demand equation is
MATHEMATICS · Single correct · CBSE · Mathematics · Applications of Derivatives · Applications of Derivatives
Problem
A manufacturer sells a product whose price-demand equation is p(q)=50−0.1q, where price p is in dollars and quantity q is in units. A per-unit tax of 2 dollars paid by the seller reduces the price received to p(q)−2. The total cost of producing q units is C(q)=10q+1000. What is the marginal profit, in dollars per unit, when q=200?
(a) 2
(b) −2
(c) 0
(d) −4