Question

A company manufacturers and sells x electric drills per month. The monthly cost and price-demand equations are
C(x)=69000+40x,

p=190−x30, 0≤x≤5000.

(A) Find the production level that results in the maximum revenue.
Production Level =

(B) Find the price that the company should charge for each drill in order to maximize profit.

Price =

(C) Suppose that a 5 dollar per drill tax is imposed. Determine the number of drills that should be produced and sold in order to maximize profit under these new circumstances.

Number of drills =

Answer 1

A) Revenue:
R(x) = P(x) * x
R'(x) = 0 => x = ....

B) Profit:
P(x) = R(x) - C(x)
P'(x) = 0 => x = ...