Determine the optimal value of demand

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Your marketing department has determined that the price you can expect to sell the appliances for is approximated by the demand curve

p = -0.0425D+500

Your setup cost to produce up to 10000 appliances per month is $50,000 and the incremental cost per appliance is $50. Plot profit as a function of demand and determine the optimal value of demand.

Reference no: EM131863256

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