How should the manufacturer set the size of the rebate

Reference no: EM13206988

A manufacturer has been selling 1000 television sets a week at $450 each. A market survey indicates that for each $10 worth of rebate offered to buyers, the number of sets sold will increase by 100 per week. (a) Find the demand function. (b) How large a rebate should the company offer buyers in order to maximize its revenue? (c) If its weekly cost function is C(x) = 68000 + 150x, how should the manufacturer set the size of the rebate in order to maximize its prot?

Reference no: EM13206988

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