A company is manufacturing a new digital watch and can sell all it manufactures.

The Cost equation is given as: C(x)= 10,000 + 50x
The Revenue equation is given as: R(x) = 70x – 0.001x2
where the production output in one day is x watches.

If production is increasing at 250 watches per day when production is 4,000 watches, find the rate of increase in Profit.

Question

A company is manufacturing a new digital watch and can sell all it manufactures.
 
The Cost equation is given as:  C(x)= 10,000 + 50x
The Revenue equation is given as: R(x) = 70x – 0.001x2
where the production output in one day is x watches.
 
If production is increasing at 250 watches per day when production is 4,000 watches, find the rate of increase in Profit.

anonymous · Answer

Revenue - Cost = Profit.

Take derivative and plug in 4,000. I think the 250 is just extra information.