
Quan S.
asked 03/18/23For a certain company, the cost for producing x items is 55x+300 and the revenue for selling x items is 95x−0.5x2 .
For a certain company, the cost for producing xx items is 55x+30055x+300 and the revenue for selling xx items is 95x−0.5x295x−0.5x2.
1 Expert Answer
The actual question is missing, but it appears to be the classic:
Profit = Revenue – Cost
in which case the question would be:
What number of items should be produced to maximize profit?
On that assumption, we can write
R(x) = 95x - 0.5x^2 and
C(x) = 55x + 300 and
P(x) = R(x) - C(x) or P(x) = - 0.5x^2 + 40x - 300
To maximize P(x), we take the derivative, and analyze its zeros:
P’(x) = -x + 40, so the only zero occurs when x = 40
P’(x) > 0 when x < 40, P’(x) = 0 when x = 40, P’(x) < 0 when x > 40
Thus we have a maximum profit when the number of items produced is 40, and that profit is P(40) = $500
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Bradford T.
Is there a question?03/18/23