a firm can produce at most 100 units of a particular product per week. if the average weekly cost function for this product is given by the equation: C(x) = 500/x + 1500 and the weekly demand equation is: p= 1600 -x ; then use this information to find the weekly profit equation to determine the maximum profit per week that can be achieved by this product.

a firm can produce at most 100 units of a particular product per week if the average weekly cost function for this product is given by the equation Cx 500x 1500 class=

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Answer:

  Maximum profit: 2000

Step-by-step explanation:

You want the maximum profit per week that can be obtained by production of x units at an average cost of c(x) = 500/x +1500 if the weekly demand equation is p = 1600 -x.

Cost

The total cost is the product of average cost and the number of units produced:

  C(x) = x·c(x) = 500 +1500x

Revenue

The revenue from sale of x units is the product of that number and their price:

  R(x) = px = (1600 -x)(x)

Profit

The profit from the sale of x units is the difference between revenue and cost:

  P(x) = R(x) -C(x)

  P(x) = (1600x -x²) -(1500x +500)

  P(x) = -x² +100x -500

The maximum profit will be had when the derivative of this is zero:

  P'(x) = 0 = -2x +100

  x = 100/2 = 50

That value of profit is ...

  P(x) = (-x +100)x -500

  P(50) = (-50 +100)(50) -500 = 2500 -500 = 2000

The maximum profit per week that can be achieved is 2000 from sale of 50 units.

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Additional comment

We can solve this without the need for derivatives by writing the profit equation in vertex form:

  P(x) = -(x -50)² +2000

This has a maximum of 2000 at x=50.