Question

Hercules Films is deciding on the price of the video release of its film Bride of the Son of Frankenstein. Marketing estimates that at a price of p dollars, it can sell

q = 220,000 − 10,000p

copies, but each copy costs $4 to make.

(a) Find the cost, revenue and profit functions.
C(p)=

11

R(p)=

220000−20000p

P(p)=

(b) What price will give the greatest profit?
p =   dollars

Second derivative test:
Your answer above is a critical point for the profit function. To show it is a maximum, calculate the second derivative of the profit function.
P"(p)=

Evaluate P"(p) at your critical point. The result is  ---Select--- positive negative  , which means that the profit is  ---Select--- concave down concave up  at the critical point, and the critical point is a maximum.

Answer 1

Please appreciate my work.
If you have any query regarding this question. You are free to ask.