13. The marginal profit for the new X-99 pogo stick is P'(x) = -0.1x + 60 where x is the number of sticks produced and sold. The profit is - $1000 when 50 sticks have been produce and sold. a) Find the profit function. b) What level of production of pogo sticks (x) produces a maximum profit?

13. The marginal profit for the new X-99 pogo stick is P'(x) = -0.1x + 60 where x is the number of sticks produced and sold. The profit is - $1000 when 50 sticks have been produce and sold. a) Find the profit function. b) What level of production of pogo sticks (x) produces a maximum profit?

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter12: The Cost Of Production

Section: Chapter Questions

Problem 3PA

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Concept explainers

Cost of Production

In economic theory, production costs are the costs incurred by an industrial organization when it engineers a project or provides a service that generates revenue and benefits. Labor costs, raw materials, consumable manufacturing costs, and general overhead sum up, accounting for production costs. Total cost data is calculated by combining total direct costs of materials, labor costs, and total production costs.

Question

13. The marginal profit for the new X-99 pogo stick is P'(x) = -0.1x+ 60 where x is
the number of sticks produced and sold. The profit is - $1000 when 50 sticks have been
produce and sold.
a) Find the profit function.
b) What level of production of pogo sticks (x) produces a maximum profit?

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