Problema Solution
the profit of a company, in dollars, is the difference between the companys revenue and cost. the cost, c(x), and revenue r(x), are functions for a particular company. the x represents the number of items produced and sold to distributors.
c(x)=2000+50x
r(x)=830x-x^2
determine the maximum profit of the company
Answer provided by our tutors
let
p(x) be the profit as a function of x (x - the number of items produced and sold)
the profit of a company, in dollars, is the difference between the company's revenue and cost
p(x) = r(x) - c(x)
p(x) = 830x - x^2 - 2000 - 50x
p(x) = - x^2 + 780X - 2000
to determine the maximum profit of the company we need to find the maximum of the function p(x)
p(x) = - x^2 + 780X - 2000 is quadratic function
since the quotient in front of x^2 is -1 < 0 the function has maximum in the vertex
for the function
f(x) = ax^2 + bx + c
the maximum value = c^2 - b^2/4a
in our case
a = -1
b = 180
c = - 2000
max p(x) = (-2000)^2 - 180^2/4*(-1) = $4,008,100
The maximum profit is $4,008,100.