Problema Solution
Suppose that the revenue, R, in dollarsfrom selling x units of a new drug is R(x)= 30x. The cost, C, in dollars, of selling x units is C(x) = 0.1x^2+7x+400.
a. Find the profit function, P(x) = R(x) -C(x)
b. Find the profit if x=30 units are sold
c. Interpret P(30)
Answer provided by our tutors
a. P(x) = R(x)- C(x)
= 0.1x^2 + 7x +400 -30x
= 0.1x^2 -23x + 400
b. P(30) = 0.1(900) -23*30 + 400
= 490 - 690
= -200
c. For 30 units, P(30) is negative. Hence loss is incurred.