4.You make very good pizzas, so you decide to sell your pizzas on campus. Since the set up for making
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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?
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