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A new Telsa manufacturing plant in Sothern Ontario plans to start manufacturing Telsa Model 3 based on the following cost of production: C(x)=15+20x+2.4x² *M0 Where x is the number of Model 3 cars manufactured in thousands and C(x) is the cost of production in $ million. Telsa is estimating the price of each Model 3 at $45 thousand. a) Determine the profit function: b) Determine the number of Model 3 cars that will allow the plant to break-even. Justify your answer. e) Determine the number of Model 3 cars that maximize profit and the maximum profit.

A new Telsa manufacturing plant in Sothern Ontario plans to start manufacturing Telsa Model 3 based on the following cost of production: C(x)=15+20x+2.4x² *M0 Where x is the number of Model 3 cars manufactured in thousands and C(x) is the cost of production in $ million. Telsa is estimating the price of each Model 3 at $45 thousand. a) Determine the profit function: b) Determine the number of Model 3 cars that will allow the plant to break-even. Justify your answer. e) Determine the number of Model 3 cars that maximize profit and the maximum profit.

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A new Telss manufacturing plant in Sothern Ontario plans to start manufacturing Telsa Model 3 based on the following cost of production: C(x)=15+20x+2.4x² *M0 Where x is the number of Model 3 cars manufactured in thousands and C(x) is the cost of production in $ million. Telsa is estimating the price of each Model 3 at $45 thousand. a) Determine the profit function: b) Determine the number of Model 3 cars that will allow the plant to break-even. Justify your answer. c) Determine the number of Model 3 cars that maximize profit and the maximum profit.
Transcribed Image Text:A new Telss manufacturing plant in Sothern Ontario plans to start manufacturing Telsa Model 3 based on the following cost of production: C(x)=15+20x+2.4x² *M0 Where x is the number of Model 3 cars manufactured in thousands and C(x) is the cost of production in $ million. Telsa is estimating the price of each Model 3 at $45 thousand. a) Determine the profit function: b) Determine the number of Model 3 cars that will allow the plant to break-even. Justify your answer. c) Determine the number of Model 3 cars that maximize profit and the maximum profit.
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