A firm faces the demand function (price in rupees for units)
MATHEMATICS · Multi-part · AP · Calculus AB · Analytical Applications of Differentiation · Analytical Applications of Differentiation
Problem
A firm faces the demand function p=80−2x (price p in rupees for x units). The fixed cost is Rs 200, and the variable cost (including a tax of Rs 4 per unit) is Rs 24 per unit.
(i) Write the profit function P(x).
(ii) Determine the number of units that maximises the profit.
(iii) Find this maximum profit.