Hello, I would like to request help with the below discussion question for my Quantative Analysis class. For a certain company, the cost function for producing x items is C(x)=50x+150 and the revenue function for selling x items is R(x)=-0.5(x-130)^2+8,450. The maximum capacity of the company is 180 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit! Answer to some of the questions are given below so that you can check your work. 1. Assuming that the company sells all that it produces, what is the profit function? P(x)=_____________ 2. What is the domain of P(x)? 3. The company can choose to produce either 80 or 90 items. What is their profit for each case, and which level of production should they choose? Profit when producing 80 items = _____________ Profit when producing 90 items = _____________ 4. Can you explain, from our model, why the company makes less profit when producting 10 more units? Thank you
Hello,
I would like to request help with the below discussion question for my Quantative Analysis class.
For a certain company, the cost function for producing x items is C(x)=50x+150 and the revenue function for selling x items is R(x)=-0.5(x-130)^2+8,450. The maximum capacity of the company is 180 items.
The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit!
Answer to some of the questions are given below so that you can check your work.
1. Assuming that the company sells all that it produces, what is the profit function? P(x)=_____________
2. What is the domain of P(x)?
3. The company can choose to produce either 80 or 90 items. What is their profit for each case, and which level of production should they choose?
Profit when producing 80 items = _____________
Profit when producing 90 items = _____________
4. Can you explain, from our model, why the company makes less profit when producting 10 more units?
Thank you
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