A Division of Chapman Corporation Manufactures a Pager

question 113

Multiple Choice

A division of Chapman Corporation manufactures a pager. The weekly fixed cost for the division is $20,000, and the variable cost for producing x pagers/week is dollars. The company realizes a revenue of dollars from the sale of x pagers/week.
Find the level of production that will yield a maximum profit for the manufacturer. (Hint: Use the quadratic formula.)

• A) 1,316 pagers/week
• B) 1,666 pagers/week
• C) 1,616 pagers/week
• D) 1,542 pagers/week

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Definitions:

Price

is the amount of money expected, required, or given in payment for something.

Change in Demand

A shift in the quantity of a product or service that consumers are willing and able to buy at various prices, due to factors like changes in consumer preferences, income, or the prices of related goods.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level in a specific period.

Price

The pecuniary figure assumed, needed, or distributed as payoff for something.