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14 May, 10:14

A chemical manufacturer sells sulfuric acid in bulk at a price of $100 per unit. If the daily production cost in dollars for x units is: C (x) = 100,000+50x+0.0025x^2, and if the daily production capacity is at most 7000 units, how many units of sulfuric acid must be manufactured and sold daily to maximize the profit?

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  1. 14 May, 13:22
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    to solve the amount of sulfuric acid to maximize the profit we need to establish the profit

    let S (x) = 100x the selling price

    P = S (x) - C (x)

    P = 100x - (100,000 + 50x + 0.0025x^2)

    P = 50x - 100000 - 0.0025x^2

    Getting the first derivative and equating it to 0

    0 = 50 - 0.005x

    X = 10000 units of sulfuric acid

    But the capacity is only 7000 units

    So 7000 units should be manufactured
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