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
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.
1 answer
1 answer