You are the manager of the industry which produce of H,SO4, which you' sell in barrels...

Transcribed Image Text:

You are the manager of the industry which produce of H,SO4, which you' sell in barrels at a rate of P barrels per day. The cost per barrel produced is C- 51 + 0.2P + 9000/P in dollars /barrel For example, for P- 100 barrels/day, C= S150/barrel. The selling price per barrel is $300. Detemine: (a) The production level giving the minimum cost per barrel. (b) The production level which maximizes the profit per day. (c) The production level at zero profit. (d) Why are the answers in (a)-and (b) different? You are the manager of the industry which produce of H,SO4, which you' sell in barrels at a rate of P barrels per day. The cost per barrel produced is C- 51 + 0.2P + 9000/P in dollars /barrel For example, for P- 100 barrels/day, C= S150/barrel. The selling price per barrel is $300. Detemine: (a) The production level giving the minimum cost per barrel. (b) The production level which maximizes the profit per day. (c) The production level at zero profit. (d) Why are the answers in (a)-and (b) different?

Answer rating: 100% (QA)

d In case of a we are minimizing production cost and in case b we are maximiz... View the full answer