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the Derivative
Department of Mathematics
Marginal profit = Mπ = 0,
which is equivalent to
Solution
We have
MC = C0 (q) = 2
and
MR = R0 (q) = 10 − 0.01q.
Setting marginal cost equal to marginal revenue we get
2 = 10 − 0.01q,
8 − 0.01q = 0.
Chapter 4: Using
the Derivative
Solution (continued)
Solving for q in this equation we get
8
q= = 800.
0.01
To find the maximum and minimum values of the profit
function on the interval 0 ≤ q ≤ 2000, we must evaluate the
profit function at each of the two endpoints of the interval
and at the critical point.
Solution
q 0 800 2000
π (q) −500 2700 −4500
Solution
You remember that the revenue function is given by
R(p) = p · q, where p stands for price and q stands for
quantity.
q − q1 = m ( p − p 1 )
which simplifies to
q = −10p + 400,
We now have
R0 (p) = −20p + 400.
Setting R0 (p) = 0 and solving for p gives us
− 20p + 400 = 0
20p = 400
p = 20.