Rite cut riding lawnmower obeys the demand equation p=-1/20x+1060. The cost of producing x lawnmowers is given by the function c(x)=120x+5000

a)Express the revenue R as a function of x
b)Express the profit P as a function of X
c)Fine the value of x that maximizes profit. What is the maximum profit?
d)What price should be charged to maximize profit?

Question

Rite cut riding lawnmower obeys the demand equation p=-1/20x+1060. The cost of producing x lawnmowers is given by the function c(x)=120x+5000

a)Express the revenue R as a function of x
b)Express the profit P as a function of X
c)Fine the value of x that maximizes profit. What is the maximum profit?
d)What price should be charged to maximize profit?

anonymous · Answer

R = P(x)*x = (-1/20)+1060x

P = R - C = (-1/20)+1060x - (120x+5000)

anonymous · Answer

Assuming perfect competition
p = MC = 120
Plug that into your inverse demand to get quantity