A company faces the price–demand relation dollars per unit
MATHEMATICS · Single correct · CBSE · Mathematics · Applications of Derivatives · Applications of Derivatives
Problem
A company faces the price–demand relation p(q)=80−0.5q dollars per unit, where q is the number of units sold. Its total cost is C(q)=20q+300 dollars. Which production level maximizes the company’s profit?
(a) q=80
(b) q=40
(c) q=60
(d) q=120