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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 …
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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 …
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May 16, 2018
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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
Mathematics
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Tarmiac
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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 = 0
x = 35
( the number of units )P max = - 0.5 · 35² + 35 · 35 - 15 = - 612.5 + 1225 - 15 =
597.5
Answer: The maximum profit is 597.5 and the number of units is 35.
Cate
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May 20, 2018
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