Math Problem Statement
Solution
The problem provides two functions:
- Cost function:
- Price function:
We are tasked with finding: a) The quantity that produces maximum profit, b) The price per unit at this , c) The maximum profit .
Steps to solve:
-
Revenue function : Revenue is the product of price and quantity:
-
Profit function : Profit is revenue minus cost: Simplifying the profit function:
-
Maximizing profit: To find the maximum profit, take the derivative of the profit function and set it equal to zero: Setting the derivative to zero: Solving for :
Thus, the number of units that produces maximum profit is .
Would you like the detailed steps for the next parts? Here are related questions:
- How do you calculate the price per unit at the maximum profit?
- What are the steps for determining the maximum profit?
- What is the significance of the second derivative in confirming a maximum?
- How can this process be applied to other cost-revenue scenarios?
- Why does setting the derivative to zero give the maximum?
Tip: Maximizing profit often involves solving a quadratic equation derived from the profit function.
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Math Problem Analysis
Mathematical Concepts
Algebra
Optimization
Revenue and Profit Functions
Quadratic Equations
Derivatives
Formulas
Revenue function: R(q) = p * q
Profit function: P(q) = R(q) - C(q)
Derivative of profit function: dP/dq = 0 (for maximum profit)
Theorems
First Derivative Test for Optimization
Suitable Grade Level
Grades 11-12, Early College
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