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Please I need help to show how to solve P(x) = 0?
Please I need help to show how to solve P(x) = 0?
Here below my solution:
Our cost function is C(x) = 10x+100 and prive demand function is P(x) =35-x
now C(0) = 10*0 + 100 = 100
it means when no bottle is produced our fixed cost is $200
p(5) = 35-5 =30
it means when demand is of 5 bottles, price per bottle is $30.
C'(x) =10 so C'(10) = 10
it means marginal cost for producing 10th bottle is $10.
R(x)=revenue function= cost * demand
when demand is of x bottles then
R(x) =x. p(x)
= x(35-x)
=35x - x^2
now P(x) is profit function and it is
R(x) - C(x) = 35x-x2 - {10x+100}
= 35x - x2 - 10x - 100
= 25x - x2 - 100
when P(x) =0 we get
x2 - 25x +100 =0
solve and we get x=20 and 5
it means profit is maximum when demand is 5 bottles or 20 bottles