Question

If the demand function of the monopolist is given by p=200-0.5x and its cost function is given by C=100+5x+7x^2 .Find Value of x at which profit is maximum

Answer 1

this question is out of mind

Answer 2

Answer:

profit = revenue - cost

revenue = price * demand

P(x) = x(200-0.5x) - (100+5x+7x^2)

= -7.5x^2 + 195x - 100

0=-15x+195

15x=195

x=13 units

Now just find the vertex of that parabola.