The selling price for q units of a product is given by the equation p = 250-25q. The cost of producing q unites of the product is:
C = 100 + 5q
a) what is the max revenue that can be generated?
b) what is the max profit that can be generated?
The selling price for q units of a product is given by the equation p = 250-25q. The cost of producing q unites of the product is:
C = 100 + 5q
a) what is the max revenue that can be generated?
b) what is the max profit that can be generated?
Hello, jamesk486!
You say you solved it.
But did you notice a small snag at the end?
The selling price for units of a product is: .
The cost of producing units of the product is: .
a) What is the max revenue that can be generated?
Then: .
Max Revenue: .
b) What is the max profit that can be generated?
. . .
. . .
Then: .
Assuming we cannot manufacture nor sell a fraction of a unit,
. . we have: .
If 5 units are made and sold, the maximum profit is $500.