00:01
Hi there, so for this problem, we are asked to find the maximum profit and the number of units that must be produced and sold in order to yield the maximum profit.
00:17
So we are given the expressions for the revenue.
00:20
So the revenue in terms of the ads units is equal to 50 times ads, then this minus 0 .1 times ads squared.
00:29
And then the cost function is just equal to four times ads plus 15.
00:37
Once we have this, we need to obtain the profit expression.
00:41
So the profit expression is just the revenue minus the cost.
00:46
We can simplify things in here because you can see that that will be 50 times ads minus four times ads.
00:53
So that will give us first 46 times ads.
00:56
Now, the next one will be minus 0 .1 times ads squared.
01:01
And the last one is minus 15.
01:04
Once we have this, we need to derive this expression with respect to ads.
01:09
So that will be then 46 minus 0 .2 times ads.
01:13
And then we set this equal to zero.
01:16
Solving for ads, that will be then 46 divided by 0 .2...