Problem

Suppose that the marginal revenue for firefighting protective clothes is $\overline{M R}=263-2 x$ and the marginal cost is $\overline{M C}=2.5 x+11$ with a fixed cost of $\$ 270$. Assume $R(0)=0$. a) How many units will result in a maximum profit? \[ x= \] b) Find the revenue function. \[ R(x)= \] c) Find the cost function. \[ C(x)= \] d) What is the maximum profit (to the nearest dollar)? The maximum profit is

Solution

Step 1 :Set the marginal revenue equal to the marginal cost: \(263 - 2x = 2.5x + 11\).

Step 2 :Solve the equation for x to find the number of units that will result in maximum profit: \(x = 56\).

Step 3 :Final Answer: \(x=\boxed{56}\)

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Source: https://solvelyapp.com/problems/19488/

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