Question: The cost function of a manufacturing concern is linear as follows: C(x) = 25x + 15,000 where C(x) is the total cost in dollars of
| The cost function of a manufacturing concern is linear as follows: | ||||||||
| C(x) = 25x + 15,000 where C(x) is the total cost in dollars of producing x units, | ||||||||
| x is the number of units produced .Its revenue function is non-linear, however, as follows: | ||||||||
| R(x) = -0.01x2 + 50x | ||||||||
| R(x) is the total revenue in dollars from the sale of x units | ||||||||
| x is the number of units sold | ||||||||
| a) What is the profit function? | ||||||||
| b) Find the breakeven points for this firm. | ||||||||
| c) What would be the maximum profit, and how many units of their product must be sold to achieve this maximum? | ||||||||
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