marginal cost
asked Nov 9, 2016 in Calculus Answers by maybin

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1 Answer

Profit = revenue - cost.

x items are sold for xP=200x-0.01x^2.

The cost of producing x items is C=50x+20000.


To maximise the profit we differentiate this: 150-0.02x and equate to zero, so x=150/0.02=50*150=7500.

To solve without using calculus:






This expression has the greatest value when x=7500.


answered Nov 9, 2016 by Rod Top Rated User (486,900 points)

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