Question
The cost, in dollars, for a company to produce x widgets is given by C ( x ) = 5250 + 7.00 x for x
The cost, in dollars, for a company to produce x widgets is given by C(x) = 5250 + 7.00x for
x 0, and the price-demand function, in dollars per widget, is p(x) = 45 - 0.02x for 0 x 2250.
, we saw that the profit function for this scenario is
P(x) = - 0.02x2 + 38.00x - 5250.
(a) The profit function is a quadratic function and so its graph is a parabola.
Does the parabola open up or down? __________
(b) Find the vertex of the profit function P(x) using algebra. Show algebraic work.
(c) State the maximum profit and the number of widgets which yield that maximum profit:
The maximum profit is _______________when ____________ widgets are produced and sold.
(d) Determine the price to charge per widget in order to maximize profit.
(e) Find and interpret the break-even points. Show algebraic work.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started