Answer:8.333333
Step-by-step explanation:
Answer:
(a)Revenue function,
Marginal Revenue function, R'(x)=580-2x
(b)Fixed cost =900
.
Marginal Cost Function=300+50x
(c)Profit,
(d)x=4
Step-by-step explanation:
<u>Part A
</u>
Price Function
The revenue function

The marginal revenue function

<u>Part B
</u>
<u>(Fixed Cost)</u>
The total cost function of the company is given by 
We expand the expression

Therefore, the fixed cost is 900
.
<u>
Marginal Cost Function</u>
If 
Marginal Cost Function, 
<u>Part C
</u>
<u>Profit Function
</u>
Profit=Revenue -Total cost

<u>
Part D
</u>
To maximize profit, we find the derivative of the profit function, equate it to zero and solve for x.

The number of cakes that maximizes profit is 4.
the answer is 1.875 pounds