Points] ASK YOUR TEACHER An automobile manufacturer sells cars in America and Europe,...
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ASK YOUR TEACHER
An automobile manufacturer sells cars in America and Europe, charging different prices in the two markets. The price function for cars sold in America is thousand dollars for and the price function for cars sold in Europe is thousand dollars for where and are the numbers of cars sold per day in America and Europe, respectively. The company's cost function is
thousand dollars.
a Find the company's profit function. Hint: Profit is revenue from America plus revenue from Europe minus costs, where each revenue is price times quantity.
b Find how many cars should be sold in each market to maximize profit.
America cars
Europe cars
Also find the price in thousand dollars for each market.
America thousand dollars
Europe thousand dollars
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