Date: MATH 1100-2 - Spring 2002
Verification:
.
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Verification:
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Verification:
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The revenue produced by
units is computed by
.
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Verification:
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Verification:
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Verification:
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Verification:
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Verification:
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Next we find the total cost:
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The profit function is
.
The maximum profit is achieved when
, that is, when
, or
(actually, since
, we know that
is a maximum).
Finally, the maximum profit is
, so that there is a
loss at the optimum level.