- 7 Marks
QT – Nov 2015 – L1 – Q7b – Elements of Calculus
Determine the number of TV sets a manufacturer should produce to maximize profit and calculate the maximum profit.
Question
A TV manufacturer finds that he can sell xx units per week at a price p=250−0.5xp = 250 – 0.5x each. His cost of production of xx TV sets per week is given by C=240+2xC = 240 + 2x.
Required:
(i) Determine how many sets per week he should produce to maximize his profit. (5 Marks)
(ii) Determine the maximum profit. (2 Marks)
Find Related Questions by Tags, levels, etc.
- Tags: Marginal Cost, Marginal Revenue, Production, Profit Maximization, TV Sets
- Level: Level 1
- Topic: Elements of Calculus
- Series: NOV 2015
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