A community for students.
Here's the question you clicked on:
 0 viewing
anonymous
 one year ago
If C(x) = 16000 + 500x − 3.2x^2 + 0.004x^3
is the cost function and
p(x) = 2900 − 8x is the demand function, find the production level that will maximize profit. (Hint: If the profit is maximized, then the marginal revenue equals the marginal cost.) I have no idea hot to solve this, please help!
anonymous
 one year ago
If C(x) = 16000 + 500x − 3.2x^2 + 0.004x^3 is the cost function and p(x) = 2900 − 8x is the demand function, find the production level that will maximize profit. (Hint: If the profit is maximized, then the marginal revenue equals the marginal cost.) I have no idea hot to solve this, please help!

This Question is Closed

Jacob902
 one year ago
Best ResponseYou've already chosen the best response.0C(1000) = 16000 + 200(1000) + 4(1000^3/2) ...............= 16000 + 200000 + 126491 ........cost = 342491 AC = 342491 / 1000 = 342.50 MC(x) = C'(x) ..........= 200 + 8x^1/2 ..........= 200 + 8(31.62) ..........= 453 ii. graph the average cost function (AC) and the marginal cost function (MC) AC = [(16000 + 200x + 4x^(3/2)] / x MC = C' = 200 + 8x^(1/2) find the x value at the intersection. x = 252 parts iii. minimum average cost (c) would be the y value at the intersection. c = $327 2. First you find the revenue function R(x) R(x) = x*p(x) = x(1700  7x) R(x) = 1700x  7x^2 max profit occurs when R'(x) = C'(x) R'(x) = 1700  14x.....C'(x) = 500  3.2x + .012x^2 1700  14x = 500  3.2x + .012x^2 0 = .012x^2 + 10.8x  1200 graphing this equation will give x = 100 when y = 0 so 100 is the production level.

anonymous
 one year ago
Best ResponseYou've already chosen the best response.0so 100 would be my answer? @Jacob902 i typed that in and it was wrong...
Ask your own question
Sign UpFind more explanations on OpenStudy
Your question is ready. Sign up for free to start getting answers.
spraguer
(Moderator)
5
→ View Detailed Profile
is replying to Can someone tell me what button the professor is hitting...
23
 Teamwork 19 Teammate
 Problem Solving 19 Hero
 Engagement 19 Mad Hatter
 You have blocked this person.
 ✔ You're a fan Checking fan status...
Thanks for being so helpful in mathematics. If you are getting quality help, make sure you spread the word about OpenStudy.