Mathematics

Mathematics

Problem

A manufacturer pays no tax on the first 120 units produced each day, but a \3per−unittaxisappliedtoeveryunitbeyond120.Theprice–demandrelationshipis3 per-unit tax is applied to every unit beyond 120. The price–demand relationship is p=50-0.25q,andproductioncostis, and production cost is 12 per unit with no fixed cost. Determine the daily production level qq that maximizes profit.

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