The total cost of producing x books is C(x)=50,000+2x dollars, and the total revenue generated by selling x books for R(x)=10x-0.0001x^2 dollars.
1) Find R'(x)
2)Find C'(x)
3)Find d/dx (r(x)-C(x))
4) When is the derivative positive, negative?
5) To maximize total profits, how many books should be produced? What is the maximum total profit? Explain reason.
The total cost of producing x books is C(x)=50,000+2x dollars, and the total revenue generated by selling x books for R(x)=10x-0.0001x^2 dollars.
1) Find R'(x)
R(x)=10x-0.0001x^2
R'(x)=10-0.0002x
2)Find C'(x)
C(x)=50,000+2x
C'(x)=2
This means that each book costs $2
3)Find d/dx (r(x)-C(x))
d/dx (r(x)-C(x))=10-0.0002x-2
d/dx (r(x)-C(x))=8 - 0.0002x
4) When is the derivative positive, negative?
\(8-0.0002x>0\\ 8>0.0002x\\ 8\div 0.0002>x\\ x<8\div 0.0002\\ x<40000\)
5) To maximize total profits, how many books should be produced? What is the maximum total profit? Explain reason.
I won't keep going as I see CPhill has already answered it.
We already know (1) and (2)
3) R(x) - C( x) =
10x - 0.0001x^2 - [ 50000 + 2x ] =
-0.0001x^2 + 8x - 50000 this the "profit" function
The derivative of this is
-0.0002x + 8
4) Set the derivative to 0 and solve
-0.0002x + 8 = 0
8 = 0.0002x divide both sides by 0.0002
x = 40000
.Here's the profit function graph : https://www.desmos.com/calculator/ejbztbmci4
The derivative will be positive from about ( 6834, 40000) and negative from about (40000, 73,166)
5) 40000 books maximizes the profit......and, as the graph shows, the max profit is $110,000
The maximum profit in this type of problem will always occur at the x value which makes the derivative = 0
The total cost of producing x books is C(x)=50,000+2x dollars, and the total revenue generated by selling x books for R(x)=10x-0.0001x^2 dollars.
1) Find R'(x)
R(x)=10x-0.0001x^2
R'(x)=10-0.0002x
2)Find C'(x)
C(x)=50,000+2x
C'(x)=2
This means that each book costs $2
3)Find d/dx (r(x)-C(x))
d/dx (r(x)-C(x))=10-0.0002x-2
d/dx (r(x)-C(x))=8 - 0.0002x
4) When is the derivative positive, negative?
\(8-0.0002x>0\\ 8>0.0002x\\ 8\div 0.0002>x\\ x<8\div 0.0002\\ x<40000\)
5) To maximize total profits, how many books should be produced? What is the maximum total profit? Explain reason.
I won't keep going as I see CPhill has already answered it.