Question

The weekly demand function for x units of a product sold by only one firm is

p = 600 −1/2x dollars

,

and the average cost of production and sale is

C = 300 + 2x dollars.

(a) Find the quantity that will maximize profit.
units

(b) Find the selling price at this optimal quantity.
$ per unit

(c) What is the maximum profit?
$

Answer 1

revenue function is given by

.

cost function is

.

profit function is given by

here we have

x coordinate of the vertex is

........................answer(a)

.

.

.

........................answer(b)

.

.

.

take x=598

........................answer(c)