A manufacturer offers price per unit based on, order quantity “x” as per following function: p = 20 – 0.001x . The cost of manufacture for x units is given by the function: C = 5x + 2000. Determine the number units he should make and sell per week to maximize the profit.
1 Answer | Add Yours
R(x)=revenue function= x.p(x)=x(20-.001x)
differntiate P(x) ,w.r.t. x
for maximum profit P'(x)=0
Thus x=7500 will give max profit.
We’ve answered 318,990 questions. We can answer yours, too.Ask a question