A manufacturer knows that if x goods are demanded on a particular week, the total cost and revenue functions will be:πΆ(π₯) = 14 + 3π₯ πππ π (π₯) = 18π₯ β 2π₯ 2 respectively.
i. Calculate the level of demand that will maximize profits (6 marks)
ii. Calculate the amount of profit that will be realized at this maximum point. (4 marks)
i)
profit function:
level of demand that will maximize profits:
ii)
amount of profit that will be realized at this maximum point:
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