The total cost C of making x units of a commodity is given by C = 0.005(x)3 + 0.45(x)2 + 12.75(x). All units made are sold at $36.75 per unit. The profit P is then given by P = 36.75(x) - C. Find the number of units to make to maximize profit.

The total cost C of making x units of a commodity is given by C = 0.005(x)3 + 0.45(x)2 + 12.75(x). All units made are sold at $36.75 per unit. The profit P is then given by P = 36.75(x) - C. Find the number of units to make to maximize profit.

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter7: Economies Of Scale And Scope

Section: Chapter Questions

Problem 7.3IP

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The total cost C of making x units of a commodity is given by C = 0.005(x)³ + 0.45(x)² + 12.75(x). All units made are sold at $36.75 per unit. The profit P is then given by P = 36.75(x) - C. Find the number of units to make to maximize profit.

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