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Average and marginal profit Let C(x) represent the cost of producing x items and p(x) be the sale price per item if x items are sold. The profit P(x) of selling x items is P(x) = x p(x) − C(x) (revenue minus costs). The average profit per item when x items are sold is P(x)/x and the marginal profit is dP/dx. The marginal profit approximates the profit obtained by selling one more item given that x items have already been sold. Consider the following cost functions C and price functions p.
- a. Find the profit function P.
- b. Find the average profit function and marginal profit function.
- c. Find the average profit and marginal profit if x = a units are sold.
- d. Interpret the meaning of the values obtained in part (c).
39. C(x) = −0.04x2 + 100x + 800, p(x) = 200, a = 1000
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Calculus: Early Transcendentals, Books A La Carte Edition (3rd Edition)
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