Problema Solution

Given the following revenue and cost functions, find the x-value that makes profit a maximum (Recall that profit equals revenue minus cost.) R(x)=58-2x^2; C(x)=21x+109

Answer provided by our tutors

Profit = revenue - cost

so ,

P(x)= R(x)-C(x)

where P(x) is profit function

hence P(x)= 58-2x2-21x-109

=-2x2-21x-51


at maximum profit , dP(X)/dx = 0

which gives -2x2-21x-51=0

i.e x=21/4=5.25