Math Problem Statement
Your monthly profit (in dollars) from your newspaper route is given by
P = 8n − <square root>n,
where n is the number of subscribers on your route. If you currently have 100 subscribers, find your profit and your marginal profit.
profit$ marginal profit$ per new subscriber
Interpret your answers.
Your current profit is $ per month and this would increase at a rate of $ per new subscriber.
Solution
The profit function is given by:
where is the number of subscribers. You're asked to find:
- The current profit when subscribers.
- The marginal profit, which is the derivative of the profit function with respect to , evaluated at .
Step 1: Calculate the profit at
We substitute into the profit function:
So, your current profit is $790 per month.
Step 2: Find the marginal profit
To find the marginal profit, we first take the derivative of the profit function :
Now, evaluate this derivative at :
Thus, the marginal profit is $7.95 per new subscriber.
Interpretation
Your current profit is $790 per month, and for each additional subscriber, your profit will increase by approximately $7.95. This means that adding new subscribers has a slightly diminishing impact on profit growth due to the square root term.
Do you need further details or have any questions?
Here are some related questions to explore further:
- What happens to the profit as the number of subscribers grows larger?
- How does the marginal profit behave as the number of subscribers increases?
- Can the marginal profit ever be negative?
- What is the maximum possible profit you can achieve with this model?
- How would the profit change if the equation included a fixed cost per subscriber?
Tip: The marginal profit helps determine how efficiently you're increasing your earnings with each new subscriber!
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Math Problem Analysis
Mathematical Concepts
Algebra
Derivatives
Profit Maximization
Marginal Analysis
Formulas
Profit function: P(n) = 8n - √n
Marginal profit (derivative): P'(n) = 8 - 1/(2√n)
Theorems
Derivative Rules
Suitable Grade Level
Grades 10-12 (Calculus Introduction)
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