Problem

4. (5pts) The profit function is defined to be the revenue minus the cost at the production level $x$. That is, the profit function $P(x)=R(x)=C(x)$. Use your previous work to find $P(x)$, then sketch the graph of this function.
Hint: use the domain found in Problem 1. $R(x)=6400 x-0.002 x^{\wedge} 2$ and $C(x)=85 x+50000$
Domain $=[0,3200000]$

Answer

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Answer

Thus, the profit function $P(x)$ and its graph have been found.

Steps

Step 1 :First, we need to find the profit function $P(x)$, which is the revenue function $R(x)$ minus the cost function $C(x)$.

Step 2 :Given that $R(x)=6400x-0.002x^2$ and $C(x)=85x+50000$, we can substitute these into the profit function.

Step 3 :So, $P(x)=R(x)-C(x)=(6400x-0.002x^2)-(85x+50000)$.

Step 4 :Simplify the equation to get $P(x)=6315x-0.002x^2-50000$.

Step 5 :Next, we need to sketch the graph of this function. We can do this by finding the roots of the equation, the vertex, and the y-intercept.

Step 6 :The roots of the equation are the values of $x$ when $P(x)=0$. So, we set $6315x-0.002x^2-50000=0$ and solve for $x$.

Step 7 :However, this equation is a quadratic equation and it's a bit complex to solve. So, we can use the quadratic formula $x = \frac{-b \pm \sqrt{b^2 - 4ac}}{2a}$, where $a=-0.002$, $b=6315$, and $c=-50000$.

Step 8 :Substitute these values into the quadratic formula to get $x = \frac{-6315 \pm \sqrt{6315^2 - 4*(-0.002)*(-50000)}}{2*(-0.002)}$.

Step 9 :Solving this equation gives us two roots, but we only consider the positive root because the quantity produced cannot be negative.

Step 10 :The vertex of the parabola is given by the formula $x = -\frac{b}{2a}$, where $a=-0.002$ and $b=6315$. Substituting these values gives us $x = -\frac{6315}{2*(-0.002)}$.

Step 11 :The y-intercept is the value of $P(x)$ when $x=0$. So, we substitute $x=0$ into the equation to get $P(0)=-50000$.

Step 12 :With these points, we can sketch the graph of the function $P(x)=6315x-0.002x^2-50000$.

Step 13 :Finally, we check whether our results meet the requirements of the problem. The graph should be a downward-opening parabola with the vertex at the point calculated above, and it should intersect the x-axis at the roots calculated above. The y-intercept should be at $P(0)=-50000$. The graph should also be within the domain $[0,3200000]$.

Step 14 :Thus, the profit function $P(x)$ and its graph have been found.

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