Average and marginal profit Let C(x) represent the cost of producing x items and p(x) be the sale price per item if x items are sold. The profit P(x) of selling x items is P(x) = x p(x) − C(x) (revenue minus costs). The average profit per item when x items are sold is P(x)/x and the marginal profit is dP/dx. The marginal profit approximates the profit obtained by selling one more item given that x items have already been sold. Consider the following cost functions C and price functions p.
- a. Find the profit function P.
- b. Find the average profit function and marginal profit function.
- c. Find the average profit and marginal profit if x = a units are sold.
- d. Interpret the meaning of the values obtained in part (c).
37. C(x) = −0.02x2 + 50x + 100, p(x) = 100, a = 500
Want to see the full answer?
Check out a sample textbook solutionChapter 3 Solutions
Calculus: Early Transcendentals (3rd Edition)
Additional Math Textbook Solutions
Elementary Statistics: Picturing the World (7th Edition)
University Calculus: Early Transcendentals (4th Edition)
Algebra and Trigonometry (6th Edition)
A First Course in Probability (10th Edition)
College Algebra with Modeling & Visualization (5th Edition)
- bThe average rate of change of the linear function f(x)=3x+5 between any two points is ________.arrow_forwardThe cost in dollars of making x items is given by the function Cx)=10x+500. a. The fixed cost is determined when zero items are produced. Find the fixed cost for this item. b.What is the cost of making 25 items? c.Suppose the maximum cost allowed is SI500. What are the domain and range of the cost function, C(x) ?arrow_forwardFind the average rates of change of f(x)=x2+2x (a) from x1=3 to x2=2 and (b) from x1=2 to x2=0.arrow_forward
- How are the absolute maximum and minimum similar to and different from the local extrema?arrow_forwardCan the average rate of change of a function be constant?arrow_forwardThe rate of change of an autocatalytic chemical reaction is kQxkx2 where Q is the amount of the original substance, x is the amount of substance formed, and k is a constant of proportionality. Factor the expression.arrow_forward
- The price p (in dollars) and the demand x for a particular clock radio are related by the equation x = 5000 – 50p. (A) Express the price p in terms of the demand x, and find the domain of this function. (B) Find the revenue R(x) from the sale of x clock radios. What is the domain of R? (C) Find the marginal revenue at a production level of 2800 clock radios. (D) Interpret R'(3900) = – 56.00.arrow_forwardThe total cost (in hundreds of dollars) to produce x units of perfume is C(x) = 4x - 3 7x + 9 (a) Find the average cost function. (b) Find the marginal average cost function. (c) Find the average cost and the marginal average cost for a production level of 50 units. Interpret your results.arrow_forwardCompute the number of units x that determine the maximum profitarrow_forward
- Algebra & Trigonometry with Analytic GeometryAlgebraISBN:9781133382119Author:SwokowskiPublisher:Cengage
- Big Ideas Math A Bridge To Success Algebra 1: Stu...AlgebraISBN:9781680331141Author:HOUGHTON MIFFLIN HARCOURTPublisher:Houghton Mifflin HarcourtCollege Algebra (MindTap Course List)AlgebraISBN:9781305652231Author:R. David Gustafson, Jeff HughesPublisher:Cengage LearningCollege AlgebraAlgebraISBN:9781305115545Author:James Stewart, Lothar Redlin, Saleem WatsonPublisher:Cengage Learning