The following is a simple, but classical model of business planning.
We assume that the quantity of product that a business will sell depends on the sale price set by the business, according to a function s(p). Note that the model requires
p ≥ 0, and s(p) ≥ 0.
Each item sold will obviously bring in a revenue of p. This allows us to determine total
revenue as a function of the price, R(p). Production and sales, however, also entail a cost. We may assume that there is a ﬁxed cost c, regardless of how many items are sold, and a variable cost, which depends on the number of items sold, v(s): Tota

Hey! We 've verified this expert answer for you, click below to unlock the details :)

I got my questions answered at brainly.com in under 10 minutes. Go to brainly.com now for free help!

Looking for something else?

Not the answer you are looking for? Search for more explanations.