Polyolefins such as polyethylene undergo slow degradation when placed in air. Degradation occurs by reactions with atmospheric oxygen that lead to the formation of carbonyl groups (groups containing oxygen), gradual….
Calculate the unit selling prices which will: (a) maximise revenue; and (b) maximise profit.
B Ltd manufactures blodgets. It has been ascertained that the market for blodgets is follows:
● at unit price £20, no blodgets are demanded or sold;
● at unit price nil, 5,000 blodgets are demanded;
● for price levels intermediate between £20 and nil there is a linear relationship between
price and demand.
The variable cost of manufacturing a blodget is £5 at all levels of output.
Requirements
Calculate the unit selling prices which will: (a) maximise revenue; and (b) maximise profit.