5. I = $60, P = $750, r = 4%
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Answer:
185 units
Step-by-step explanation:
Given,
The revenue function is,
Cost function,
,
Where,
x = number of units produced.
Thus, profit = revenue - cost
Differentiating with respect to x,
Again differentiating with respect to x,
For maxima or minima,
P'(x) = 0,
For x = 185,
P''(x) = negative,
Hence, for maximising the profit 185 units must be produced.