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Example
Suppose the demand and cost functions are given by
Q = 21 - 0.1P and C = 200 + 10Q
Where,
Q - Quantity sold
P - Price per unit sold
C - Cost of production.
We can compute the revenue and profit as:
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Definition 1. We say that f(x) consist an absolute (or global) maximum at x = c if f ( x ) ≤ f (c ) for every x in the domain we are working on. 2. We say that at x = c ,
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