1. The cost function for a commodity is given by C(x) - 200+12x+0.1x² (S) and the demand functis p-300-0.02x ($/unit) where x- quantity (demanded and produced).(a) What is the profit function for this commodity?(b) Find the marginal profit function.(c) What is the marginal profit when x-10?!(d) What does this marginal profit tell you?(e) Find the level of demand at which profit is a maximum. Show how you do this using calculus.(1) What is the maximum profit, and what is the selling price that realizes this profit?Ans:R(x)-300x-0.02x², P(x)=-0.12x² +288x-200, P'(10) - 285.6 (S), approximate increasein profit from selling one more unit when sales are at 10 units, solving P'(x)-0 gives max atunit.x-1200 units, max profit - $172,600, price = 300-0.02(1200)-$276 per

Profit is the difference between total revenue and total cost. Total revenue is the product of…

1. The cost function for a commodity is given by C(x)- 200+12x+0.1x² (S) and the demand functi is p-300-0.02x ($/unit) where x - quantity (demanded and produced). (a) What is the profit function for this commodity? (b) Find the marginal profit function. (c) What is the marginal profit when x-10?

1. The cost function for a commodity is given by C(x)- 200+12x+0.1x² (S) and the demand functi is p-300-0.02x ($/unit) where x - quantity (demanded and produced). (a) What is the profit function for this commodity? (b) Find the marginal profit function. (c) What is the marginal profit when x-10?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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