Q2. Ali has started a small business deals with a certain product, he achieved an...
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Q2. Ali has started a small business deals with a certain product, he achieved an amount of sales OMR 13200, at the price of OMR 220 per unit, but when he reduced the price by OMR 30 per unit he achieved sales of OMR 17100 . If the variable cost per unit is OMR 50, and the fixed cost is OMR 4600 . Required: i. From the above information, formulate the price function, and the cost function of this business. ii. Use the functions to determine the following: a. Profit maximizing quantity. b. Profit-maximizing price. c. Maximum profit value. d. Revenue-maximizing quantity. iii. Suggest a reduction in the fixed cost which gives a maximum profit value between OMR (4000 and 5400), calculate the maximum profit value after the cost reduction
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