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The monthly demand function for a product sold by a monopoly is
p = 3750 − 1/3x^2 dollars, and the average cost is C = 1000 + 70x + 3x^2
dollars. Production is limited to 1000 units and x is in hundreds of units.
(a) Find the quantity that will give maximum profit.
(b) Find the maximum profit. (Round your answer to the nearest cent.)

  • Calculus - Incomplete - ,

    profit = revenue - cost
    revenue = price * quantity
    cost = avg cost * quantity

    No indication is given regarding price per unit.

  • Calculus - ,

    I've done p= x(3750 − 1/3x^2) and C = x(1000 + 70x + 3x^2)
    Profit= 3750x-1/3x^3-1000x-70x^2-3x^3= 2750x-70x^2-4/3x^3

    P'(x)= 2750-140x-12x^2
    Then I did the Quadratic Formula and and got 22 but it's wrong

  • Calculus - ,

    There seems to be something wrong here.
    It appears that x is the selling price, making

    x(3750 − 1/3x^2) the revenue

    But how can the average cost C be dependent on the selling price?

    Are you somehow mixing up x, making it the price in one place and the quantity in another?

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