Question

1. t

To get full credit for this question make sure you verify that your answer is indeed the absolute maximum.

Country Motorbikes Incorporated finds that it costs $200 to produce each motorbike, and that fixed costs are $1500 per day. The price function is

p(x) = 600 − 5x,

where p is the price (in dollars) at which exactly x motorbikes will be sold. Find the quantity Country Motorbikes should produce and the price it should charge to maximize profit. Also find the maximum profit.

quantity		motorbikes
price	$
profit	$

If, and only if, you can't figure out how to set up the optimization problem above, you may do the problem below for lesser credit.

Extreme Bicycles' total cost of producing x bicycles is

C = 200 + 1300x

dollars and its total revenue function is

R = 1400x − x²

dollars, how many units, x, should it produce to maximize its profit?
x =  units

Find the maximum profit.
$

Answer 1