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Question

Find the maximum profit that a company can make if the profit function is given by px=41-72x-18x2.


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Solution

Compute the maximum profit of the company:

Given: profit function

p open parentheses x close parentheses equals 41 minus 72 x minus 18 x squared and

p'x=-72-36x [ First derivative of the given function ]

p''x=-36 [ as we can see, this is negative for allx; ]

So, p'x=-72-36x=0

36x=-72

x=-2 [therefore, px will have its maxima at x=-2]

The maximum profit which the company is going to make is:

p-2=41-72-2-18-22p-2=41--144-72p-2=113

Hence, the maximum profit is113.


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