Asked by Anonymous
If
C(x) = 12000 + 400x − 1.6x2 + 0.004x3
is the cost function and
p(x) = 1600 − 7x
is the demand function, find the production level that will maximize profit.
C(x) = 12000 + 400x − 1.6x2 + 0.004x3
is the cost function and
p(x) = 1600 − 7x
is the demand function, find the production level that will maximize profit.
Answers
Answered by
oobleck
profit = revenue - cost = quantity*price - cost
f(x) = x*p(x) - c(x)
= x(1600-7x) - (12000 + 400x − 1.6x^2 + 0.004x^3)
Now just find x>0 where f'(x) = 0
f(x) = x*p(x) - c(x)
= x(1600-7x) - (12000 + 400x − 1.6x^2 + 0.004x^3)
Now just find x>0 where f'(x) = 0
There are no AI answers yet. The ability to request AI answers is coming soon!
Submit Your Answer
We prioritize human answers over AI answers.
If you are human, and you can answer this question, please submit your answer.