Hartismere School

An outstanding coeducational secondary school & sixth form college and England's first academy

Product Prices - An optimisation problem

You have a product to sell. What price should you charge to maximize your profits?

 

Some points to discuss:

·       What are the advantages of setting a low price?

 

·       How low is it sensible to go?

 

·       If you sell more items, does this mean you make more money?

 

·       What information would you need to be able to answer this question?