Question

Suppose consumers will purchase q units of a product at a price of 70/q+5 dollars per unit. What is the number of units that must be sold in order to obtain revenue of at least $90?

Answer 1

Answer on Question #48699 – Math – Algebra

Suppose consumers will purchase q units of a product at a price of 70/q+5 dollars per unit. What is the number of units that must be sold in order to obtain revenue of at least $90?

Solution

p = 70/q+5, TR = p*q = $90, so we get the following formulae:

p = 70/q + 5

p*q ≥ 90

(70/q + 5)q ≥ 90

70+5q≥ 90

5q≥ 20

q≥ 4

So, 4 units must be sold in order to obtain revenue of at least $90.

Answer: 4 units.

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