A commodity has a demand function modeled by p = 126 − 0.5x and a total cost function modeled by C = 50x + 39.75,where x is the number of units. (a)Use the first marginal analysis criterion presented in class to find the production level that yields a maximum profit. Then use the second criterion to ensure that level yields a maximum and not a minimum. Finally, what unit price (in dollars) yields a maximum profit? $ per unit (b)When the profit is maximized, what is the average total cost (in dollars) per unit? (Round your answer to two decimal places.) $ per unit
A commodity has a demand function modeled by p = 126 − 0.5x and a total cost function modeled by C = 50x + 39.75,where x is the number of units. (a)Use the first marginal analysis criterion presented in class to find the production level that yields a maximum profit. Then use the second criterion to ensure that level yields a maximum and not a minimum. Finally, what unit price (in dollars) yields a maximum profit? $ per unit (b)When the profit is maximized, what is the average total cost (in dollars) per unit? (Round your answer to two decimal places.) $ per unit
Calculus: Early Transcendentals
8th Edition
ISBN:9781285741550
Author:James Stewart
Publisher:James Stewart
Chapter1: Functions And Models
Section: Chapter Questions
Problem 1RCC: (a) What is a function? What are its domain and range? (b) What is the graph of a function? (c) How...
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A commodity has a demand function modeled by p = 126 − 0.5x and a total cost function modeled by C = 50x + 39.75,where x is the number of units.
(a)Use the first marginal analysis criterion presented in class to find the production level that yields a maximum profit. Then use the second criterion to ensure that level yields a maximum and not a minimum. Finally, what unit price (in dollars) yields a maximum profit?
$ per unit
(b)When the profit is maximized, what is the average total cost (in dollars) per unit? (Round your answer to two decimal places.)
$ per unit
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