Register

CAT 2007 | Question: 13

• edited by
889 views
0 votes
0 votes

Directions for below question:

Mr. David manufacturers and sells a single product a fixed price in a niche market. The selling price of each unit is Rs. $30.$ On the other hand, the cost, in rupees, of producing x units is $240+bx+cx^2$ where $b$ and $c$ are some constants. Mr. David noticed that doubling the daily production from $40$ to $60$ units results in an increases the daily production cost by $66.66\%.$ However, an increase in daily production from $40-60$ units results in an increase of only $50\%$ in the daily production cost, Assume that demand is unlimited and that Mr. David can sell as much he can produce. His objective is to maximize the profit.

What is the maximum daily profit, in rupees, that Mr.David can realize from his business?

  1. $620$
  2. $920$
  3. $840$
  4. $760$
  5. cannot be determined
• edited by
User Avatar

Please log in or register to answer this question.

Voting & Accepting an answer helps improve the community
← PreviousNext →
← Previous in categoryNext in category →

Related questions

446
views
0 answers
0 votes
go_editor asked Dec 6, 2015
446 views
CAT 2007 | Question: 12
Directions for below question:Mr. David manufacturers and sells a single product a fixed price in a niche market. The selling price of each unit is Rs. $30.$ On the other...
538
views
0 answers
0 votes
go_editor asked May 3, 2016
538 views
CAT 2007 | Question: 05
Directions for the below question:Let $S$ be the set of all pairs $(i, j)$ where $ 1 \leq i \leq j < n$ and $n \geq 4$. Any two distinct number of $S$ are called ‘frien...
926
views
0 answers
0 votes
go_editor asked May 3, 2016
926 views
CAT 2007 | Question: 07
Directions for below question:Shabnam is considering three alternatives to invest her surplus cash for a week. She wishes to guarantee maximum returns on her investment. ...
487
views
0 answers
0 votes
go_editor asked May 3, 2016
487 views
CAT 2007 | Question: 15
Directions for the below question:Let $a_1=p$ and $b_1 =q$ where $p$ and $q$ are positive quantities.Define:$a_n pb_{n-1} \: \: \: b_n=qb_{n-1}$ for even $n>1$and $a_n p...
1.5k
views
1 answers
0 votes
go_editor asked Apr 29, 2016
1,509 views
CAT 2007 | Question: 09
Directions for the below question.Cities A and B are in different time zones. A is located $3000$ km east of B. The table below describes the schedule of an airline opera...
Link Copied!