Question

Find the maximum profit and the number of units that must be produced and sold in order to yield the maximum profit. Assume that​ revenue, R(x), and​ cost, C(x), of producing x units are in dollars.

R(x)=40x-0.5x^2, C(x)=5x+15

Answer 1

The Profit = Revenue - CostP ( x ) = ( 40 x - 0.5 x² ) - ( 5 x + 15 ) = = 40 x - 0.5 x² - 5 x - 15 = - 0.5 x² + 35 x - 15The maximum profit is when: P`( x ) = 0P ` ( x ) = ( - 0.5 x² + 35 x - 15 ) ` = - x + 35- x + 35 = 0x = 35 ( the number of units )P max = - 0.5 · 35² + 35 · 35 - 15 = - 612.5 + 1225 - 15 = 597.5Answer: The maximum profit is 597.5 and the number of units is 35.