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The marketing department of a business has determined that the demand for a product can be...

The marketing department of a business has determined that the demand for a product can be modeled by p = 24 √ x , where p is the price per unit (in dollars) and x is the number of units. The cost (in dollars) of producing x units is given by C = 0.5x + 500. What price will yield a maximum profit?

Math   Calculus   
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Homework Answers

Answer #1

Demand function

Revenue

cost function

Profit = Revenue - Cost

Differentiating with respect to x

For critical points

units

so x=576 is maxima point

dollars

Price

dollars per unit

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