Question: If the cost equation in Exercise is C(x) = 0.5x2 + x + 1, what price should be charged to maximize profit?
Exercise: A producer finds that demand for his commodity obeys a linear demand equation p + 2x = 100 where p is in dollars and x in thousands of units.
(a) Find the level of production that will maximize revenue. If the producer s costs are given by C(x) = 2 + 3x what should his level of production be to maximize profits?