The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per barrel is $16. Price is related to demand according to the following linear equation. v - 75,000 1,153.8p Develop the nonlinear profit function for the brewery and determine the price that will max- imize profit, the optimal volume, and the maximum profit per year.

The Rainwater Brewery produces beer. The annual fixed cost is $150,000, and the variable cost per barrel is $16. Price is related to demand according to the following linear equation. v - 75,000 1,153.8p Develop the nonlinear profit function for the brewery and determine the price that will max- imize profit, the optimal volume, and the maximum profit per year.

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 9SQP

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