the cost of producing and making x unit of a certain commodity is given
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The profit function is given by
P(x)=xp(x)−C(x)
=x(10−0.001x)−(50+5x)
=10x−0.001x
2
−50−5x
=5x−0.001x
2
−50
Take the derivative of P(x) :
P
′
(x)=5−0.002x
So, the critical point is
x=2500
Since, the second derivative of P(x) is negative, x=2500 is a point of maximum.
Hence, the company has the largest profit when x=2500.
Step-by-step explanation:
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