Question: the telephone company is planning to introduce two new types...
The telephone company is planning to introduce two new types of
executive communications systems that it hopes to sell to its
largest commercial customers. It is estimated that if the first
type of system is priced at x hundred dollars per system and the
second type at y hundred dollars per system, approximately
40−8x+5y consumers will buy the first type and
50+9x−7y will buy the second type. If the cost of
manufacturing the first type is $1900 per system and the cost of
manufacturing the second type is $3500 per system, what prices x
and y will maximize the telephone company's profit?
First type: x = hundred dollars per system.
Second type: y = hundred dollars per system.