An office supply company manufactures and sells X permanentmarkers per year at a price of P €/unit. The Price/Demand equationfor the markers is: ? = 5 ? 0.001?
1. Write the Revenues function (10%)
2. What level of production and what price should thecompany charge for the markers to maximize revenues?
The total cost of manufacturing is: ?(?) = 3000 + 2?
Write the Company’s Profit function
What level of production and what price should the companycharge for the markers to maximize profits?
Draw a graph representing the above-mentioned situation
Now the government decides to tax the Company in 1€ for eachmarker produced. Taking into account this additional cost:
Write the company’s new Cost function
Write the company’s new Profit function
What level of production and what price should the companycharge for the markers to maximize profits (with these newconditions)?
(Please don't skip questions 5, 6, 7, 8, I need especiallythem)
