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Calculus question, please help?

0 votes

An electronic manufacturing company has determined that the cost of producing x units of its newest stereo is C(x) = 3500 + 10x ,

and the monthly demand equation for this cost function is p = [40 - (1/1500) x] where x is the number of units and p is the price in

dollars. Use the demand equation to find the revenue equation. Then find the profit equation and use it to compute the profit and

marginal profit for a production level of 2250 units. The marginal profit when 2250 units are produced is _____________dollars?

asked Oct 21, 2014 in CALCULUS by anonymous

1 Answer

0 votes

Cost function C(x) = 3500 + 10x

Demand ( Price ) function p(x) = 40 - (1/1500)x

Revenue equation r(x) = Price function * Number of units

image

image

image

Profit equation= Profit function= s(x) = Revenue function - Cost Function

s(x) = r(x) - c(x)

image

image

image

Profit image

Substitute x = 2250

Profit at x=2250 image

image

image

Marginal profit is the derivative (slope )of the profit function.

so take the derivative of p(x) and evaluate it at x = 2250

image

Apply derivative

image

image

image

Substitute x = 2250

image

image

Revenue equation image

Profit at 2250 units is  image

The marginal profit when 2250 units are produced is 48490 dollars

answered Oct 21, 2014 by lilly Expert

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