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Ber [7]
3 years ago
15

A liquid form of penicillin manufactured by a pharmaceutical firm is sold in bulk at a price of

Mathematics
1 answer:
inna [77]3 years ago
7 0
The revenue is given by the unit price * number of units.
Profit = Revenue - Cost = 200x - 500,000 - 80x - 0.003x^2 = 120x - 500,000 - 0.003x^2
For profit to be maximum dP/dx = 0
120 - 0.006x = 0
x = 120/0.006 = 20,000

Therefore, to maximize profit, the firm should produce 20,000 penicillin.
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