The demand function for a tablet is given by the model p = 200 - 16x2 where p is measured in dollars per tablet and x is measured in millions of tablets. If it costs $50 to produce each tablet and a profit of $125 million was derive when 2.5 million tablets were produced. Derive the number of tablets that the company could sell to make the same amount of profit?
demand"p=200-16X^2.....(1)"
p=dollars per tablet
x=millions of tablet
cost for producing each tablet=50
profit=125
revenue=px
"=(200-16x^2)x\\\\=200x-16x^3"
cost=50x
"profit=RX-CX\\\\125=200x-16x^3-50x\\\\125=150x-16^3\\\\16x^3-150x+125=0\\\\(2x-5)(8x^2+20x-25)=0"
if
"\\\\2x-5=0\\\\x=\\frac{5}{2}=2.5"
and if
"8x^2+20x-25=0\\\\x=2.5"
now the company should sell in the price
"p(2.5)=200-16(2.5)^2\\\\=200-16\\times(\\frac{5}{2})^2\\\\=200-16\\times\\frac{25}{4}\\\\=200-4\\times 25\\\\=200-100\\\\=100"
p(2.5)=100 dollars per tablet.
hence the company should sell 2.5 millions tablet in the price of 100 dollars per tablet to make profit of $125
Comments
Leave a comment