Question

Given the given cost function C(x)=4600+860 x+1.4 x² and the demand function p(x)=2580. Find the production level that will maximize profit.

Answer 1

To maximize profit, take the derivative of the profit function and set it equal to zero to find the production level.

Step-by-step explanation:

To find the production level that will maximize profit, we need to find the quantity that will make the profit as high as possible. In this case, we can use the cost function C(x) and the demand function p(x) to calculate the profit function P(x).

Profit (P(x)) = Revenue (p(x) * x) - Cost (C(x)).

To maximize profit, we can take the derivative of the profit function with respect to x, set it equal to zero, and solve for x. The value of x that solves this equation will give us the production level that maximizes profit.