The weekly revenue for a product is given by R(x) = 324x - 0.0495x?, and the weekly cost is C(x) = 8000 + 162x - 0.099x2 + 0.00003x”, where x is the number of units produced and sold
(a) How many units will give the maximum profit?
(b) What is the maximum possible profit?
(a) The number of units that will give the maximum profit is
(Round to the nearest whole number as needed.)

(a) The number of units that will give the maximum profit is 2,000 units.

(b) The maximum possible profit is $274,000.

Step-by-step explanation:

(a) How many units will give the maximum profit?

From the attached photo in the question, we are given;

R(x) = 324x - 0.0495x^2 ……………………….. (1)

C(x) = 8000 + 162x - 0.099x^2 + 0.00003x^3 …………………….. (2)

In economics, profit function, P(x), is obtained as follows:

P(x) = R(x) - C(x) ………………………. (3)

Substituting the equations (1) and (2) for R(x) and C(x) respectively into equation (3) and then simplify, we have:

P = 324x - 0.0495x^2 - (8000 + 162x - 0.099x^2 + 0.00003x^3)

P = 324x - 0.0495x^2 - 8000 - 162x + 0.099x^2 - 0.00003x^3

P = -8000 + 162x + 0.0495x^2 - 0.00003x^3 ………………….. (4)

Taking a derivative of equation (4) with respect to x and equating to 0, we have:

162 + 0.099x - 0.00009x^2 = 0 (5)

Using the almighty formula as follows:

x = (-b +/- (b^2 - 4ac)^0.5) / 2a ………………. (6)

Where, from equation (5);

a = - 0.00009

b = 0.099

c = 162

Substituting the values into equation (6), we have:

x = (-0.099 +/- (0.099^2 - (4 * (- 0.00009) * 162))^0.5) / (2 * - 0.00009)

x = (-0.099 +/- 0.261) / -0.00018

x = (-0.099 + 0.261) / -0.00018, or x = (-0.099 - 0.261) / -0.00018

x = -900, or x = 2000

Since negative number does not have economic value in economics, the number of units that will give the maximum profit is therefore 2,000 units.

(b) What is the maximum possible profit?

From part a, x = 2000

Substituting x = 2000 into equation (4) and then solve, we have:

P(x) = -8000 + (162 * 2000) + (0.0495 * 2000^2) - (0.00003 * 2000^3)

P(x) = 274,000

Therefore, the maximum possible profit is $274,000.

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you answer is a

step-by-step explanation: