Thread: 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.

Originally Posted by ArmiAldi

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?)

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

Differentiate the function with respect to x. (You know how to differentiate this, right?)

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.

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The sign test shows that the value of x corresponds to a maximum turning point.