Question

A product can be manufactured at a total cost C(x) = (x²/100) + 100x + 40, where x is the number of units produced. The price at which each unit can be sold is given by P = (200 – (x/400)) Determine the production level x at which the profit is maximum. What are the price per unit and total profit at the level of production?

Answer 1

Here, C(x) = (x²/100) + 100x + 40 is the total cost, where x is the number of units produced.

Thus, production level x is maximum at 4000.