An industry produces x pieces/day. The total cost of production is given by C(x) = (1/4)x^2 + 35x + 25 and the selling price of a piece is given by...
An industry produces x pieces/day. The total cost of production is given by C(x) = (1/4)x^2 + 35x + 25 and the selling price of a piece is given by P(x) = 50 - (1/2)x. What should be the daily production to obtain maximum profit?
The profit function is given by L(x) = (50x - (1/2)x^2) - (1/4)x^2 - 35x - 25. The first order condition for maximum profit is 50 - x - x/2 - 35 = 0. The second order condition for maximum profit is -3/2 < 0. The daily production for maximum profit is 10.
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