If C(x) = 15000 + 500x - 0.6x^2 + 0.004x^3 is the cost function and p(x) = 1700 - 6x 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.)
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First, we need to find the revenue function, R(w). Revenue is the product of price and quantity, so we have: R(w) = p(w) * w = (1700 - 61w) * w = 1700w - 61w^2 Show more…
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