ISBM

posted by .

The price P per unit at which a company can sell all that it produces is given by the
function P(x) = 300 — 4x. The cost function is c(x) = 500 + 28x where x is the number
of units produced. Find x so that the profit is maximum.

  • ISBM -

    profit = revenue - cost
    revenue = demand * price

    profit is thus x(300-4x) - (500+28x)
    = -4x^2 + 272x - 500

    This a parabola with vertex at (34,4124)

    So, max profit is 4124 when x = 34

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. math

    a computer company can sell 1000 computers if they price them at $500. The number sold will increase by 10 for every 1$ decrease in the price. The company has fixed cost of $100,000, and each computer costs $300 to produce. Find the …
  2. mba

    the price p per unit at which a company can sell all that it produces is given by the function p(x) = 300-4x. the costs function is c(x) = 500+28x where x is the number of units produced. find x so that the profit is maximum
  3. Management

    The price P per unit at which a company can sell all that it produces is given by the, function P(x) = 300 — 4x. The cost function is c(x) = 500 + 28x where x is the number, of units produced. Find x so that the profit is maximum., …
  4. Qvntitative Methods

    CASE STUDY: 1 The bulbs manufactured by a company gave a mean life of 3000 hours with standard deviation of 400 hours. If a bulb is selected at random, what is the probability it will have a mean life less than 2000 hours?
  5. college algebra

    A manufacturer produces a product at a cost of $26.80 per unit. The manufacturer has a fixed cost of $500.00 per day. Each unit retails for $37.00. Let x represent the number of units produced in a 5-day period. Write the profit P …
  6. Calculus

    A company decides to begin making and selling computers. The price function is given as follows: p=−70x+4000, where x is the number of computers that can be sold at a price of p dollars per unit. Additionally, the financial department …
  7. ISBM

    CASE STUDY : 2 The price P per unit at which a company can sell all that it produces is given by the function P(x) = 300 — 4x. The cost function is c(x) = 500 + 28x where x is the number of units produced. Find x so that the profit …
  8. math

    The pricing policy of a company follows the demand equation p=D(x). D(x) being the price per unit when x units are demanded. After studying the market trends the company determines the price function that is given by D(x)= 2000-4x. …
  9. Microeconomics

    A computer company produces affordable, easy-to-use home computer systems and has fixed costs of $250. The marginal cost of producing computers is $700 for the first computer, $250 for the second, $300 for the third, and $350 for the …
  10. Math

    The cost of producing x units of a certain commodity is given by P(x)=1000+ int(MC(s))ds from 0 to x, where P is in dollars and M(x) is marginal cost in dollars per unit. A. Suppose the marginal cost at a production level of 500 units …

More Similar Questions