If profit is given by:
p(x) = 280x - 3x^3 + 5x ln(x)
The average profit form would be:
= p(x) / x
= 280 - 3x^2 + 5 ln(x)
___________________
now, how do i determine how many units should be produced so the average profit is a max ?!
If profit is given by:
p(x) = 280x - 3x^3 + 5x ln(x)
The average profit form would be:
= p(x) / x
= 280 - 3x^2 + 5 ln(x)
___________________
now, how do i determine how many units should be produced so the average profit is a max ?!
I'd really appreciate it if anyone can tell of if I'm on the right track!
For a maximum point, f'(x) = 0 and f"(x) < 0
Therefore:
We find the first and the 2nd derivate of the AVERAGE profit function:
P'(x) = - 6x + 1/x = 0
P"(x) = [ -6 - 1/x^2 ] < 0
IS this right so far?!!
I'm really confused.