4.You make very good pizzas, so you decide to sell your pizzas on campus. Since the set up for making
pizza is already available to you, the only cost involved is that of making the pizza, which you calculate to be $ 5 per pizza.
a. What is the cost function?
If 10 pizzas are available in a day, the market offers a price of $ 11 per pizza. If 50 pizzas are available in a day, the market offers a price of $ 7 per pizza.
b. Assuming a linear relationship between price and quantity, find the price that the market offers as a function of the number of pizzas available. You start selling the pizzas.
c. What is revenue as a function of the quantity you sell? What is the profit function?
d. What quantity will maximize your profit? Call it q ∗ 1. What is the maximum profit?
e. If somebody is already supplying 5 pizzas every day, What is the maximum profit that you can make?