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.