MHB Help me with profit maximizing level of output

[foskel]

I really do not understand what my instructor taught about profit maximizing and profit earned at maximum...so please tell me how to solve them. Thank you very much!

Happy Planet drinks price change as the quantity sold changes. In particular \(p=10-0.005x\).

The total cost to produce the drinks are \(\$2.50\) per drink.

Their production factory costs \(\$1000\) per month.

What is the profit maximizing level of output?

Richard Simmons exercise videos have a \(TR=21x-0.5x^2\) and \(TC=5x+3\).
What is the profit earned at maximum?
​

 

[MarkFL]

Re: help me with profit maximizing level of output

Hello foskel,

A few things we need to know are:

• Revenue is price per unit times units sold
• Total cost is cost per unit times units sold to which we add fixed costs
• Profit is revenue minus total cost
• Maximum profit occurs where marginal profit is zero

Can you use this information to solve the problems? If you still need guidance, please feel free to let us know and we will gladly offer further help, but I want to give you a chance to works these yourself first.

 

[Petrus]

Re: help me with profit maximizing level of output

I really do not understand what my instructor taught about profit maximizing and profit earned at maximum...so please tell me how to solve them. Thank you very much!

Happy Planet drinks price change as the quantity sold changes. In particular p=10-0.005x.

The total cost to produce the drinks are $2.50 per drink.

Their production factory costs $1000 per month.

What is the profit maximizing level of output?

Richard Simmons exercise videos have a TR=21x-0.5 and TC=5x+3.
What is the profit earned at maximum?​

Hello foskel,
just a tips don't use latex code when you write sentence. I honestly tried it as well and I don't know if you can get space when you write sentence on latex but right now there is none space in each words.

 

[Nono713]

Re: help me with profit maximizing level of output

Hello foskel,
just a tips don't use latex code when you write sentence. I honestly tried it as well and I don't know if you can get space when you write sentence on latex but right now there is none space in each words.

I think it was accidental, and because of the dollar signs. Use backslash + dollar to escape dollar signs:

$250 and this will be munched up by LaTeX ... $500

\$250 and this will work fine ... \$500

$250 and this will be munched up by LaTeX ... $500

\$250 and this will work fine ... \$500