Find the level of production that will maximize revenue

Reference no: EM131176954

If the cost equation in Exercise 1 is C(x) = 0.5x² + x + 1, what price should be charged to maximize profit?

Exercise 1

A producer finds that demand for his commodity obeys a linear demand equation p + 2x = 100 where p is in dollars and x in thousands of units.

(a) Find the level of production that will maximize revenue. If the producer s costs are given by C(x) = 2 + 3x what should his level of production be to maximize profits?

Reference no: EM131176954

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