Problem

An economist hired by a company that makes a popular line of indoor grills predicts that consumers in one market will buy x units per week if the price is p=0.12x+62 dollars. The profit is given by the equation
P=0.16x2+45x557

Answer

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Answer

Final Answer: The maximum profit is achieved when 140.625 units are sold at a price of $45.125 per unit. So, 140.625,45.125.

Steps

Step 1 :Given the profit function P=0.16x2+45x557 and the price function p=0.12x+62, we are to find the number of units and the price at which maximum profit is achieved.

Step 2 :To find the maximum profit, we need to find the derivative of the profit function and set it equal to zero. This will give us the value of x (number of units) at which the profit is maximized.

Step 3 :The derivative of the profit function is P=450.32x. Setting this equal to zero, we find that x=140.625.

Step 4 :Substituting this value of x into the price function, we find that the price at which maximum profit is achieved is p=620.12140.625=45.125.

Step 5 :Final Answer: The maximum profit is achieved when 140.625 units are sold at a price of $45.125 per unit. So, 140.625,45.125.

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