A manufacturer faces the demand equation and incurs production costs of dollars per unit
MATHEMATICS · Single correct · A Level · Mathematics · Differentiation · Differentiation
Problem
A manufacturer faces the demand equation p=80−0.5q and incurs production costs of 20 dollars per unit. In addition, a per-unit tax of 10 is imposed on every unit produced beyond 60 units. What production level maximizes the manufacturer’s profit?
(a) q=55\,units
(b) q=60\,units
(c) q=50\,units
(d) q=65\,units