Total revenue from
Assume the total revenue from the sale of X items given by R9x) = In (8x+1),
while the total cos to produce x items is C(x)=x/5. Find the approxiamate number of items that should be manufactured so that profit, R (x) - C(x) is maximum.
Thank You all.
Differentiate the function with respect to x. (You know how to differentiate this, right?)
Originally Posted by ArmiAldi
Put that derivative equal to zero to find the x-coordinate of the stationary point. Test the nature of this solution to prove that this stationary point is a maximum turning point.
Then the value of x found is the answer to the question.
Originally Posted by mr fantastic
The sign test shows that the value of x corresponds to a maximum turning point.