The profit function for a certain commodity is P(x) - 190x - x - 1000. Find the level of production that yields maximum profit, and find the maximum profit. units P-$ Need Help? Talk to a Tutor Read t Watch it

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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The profit function for a certain commodity is P(x) - 190x - x - 1000. Find the level of production that yields maximum profit, and find the maximum profit.
units
P-$
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Transcribed Image Text:The profit function for a certain commodity is P(x) - 190x - x - 1000. Find the level of production that yields maximum profit, and find the maximum profit. units P-$ Need Help? Talk to a Tutor Read t Watch it
Expert Solution
Step 1

In the production function, different inputs are used to produce the final output. Each input has its own level of productivity. A firm produces with the aim to maximize profits. Revenues and profits induce firms to produce further. Profit is the value that can be obtained by deducting the total cost from total revenue. 

 

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