If C(x) = 19000 + 400x - 2.6x^2 + 0.004x^3 is the cost function and p(x) = 1600 - 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.)
Added by Kenneth B.
Step 1
The revenue function R(x) is the product of the price per unit and the number of units sold, which is p(x) * x. So, R(x) = (1600 - 8x) * x = 1600x - 8x^2. Show more…
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