the cost and price functions for a new Internet search company are reasonably ap
ID: 3344716 • Letter: T
Question
the cost and price functions for a new Internet search company are reasonably approximated by the following models: C(x) = 37 + 1.42x - 0.0067x^2 + 0.00011x^3 p(x) = 3.7 - 0.007x Where x represents the number of searches (in millions) per month. Find the ideal number of searches this company can manage (to maximize profit) per month. (A) Approximately 65 million searches per month (B) Approximately 76 million searches per month (C) Approximately 82 million searches per month (D) Approximately 97 million searches per month (E) None of the above (Please show work for 5 stars)Explanation / Answer
profit function will be , price function minus cost function so,...........................................................................................................................................................let profit function represented by , G(x) = P(x)-C(x) = 3.7 - 0.007x - 37-1.42x+0.0067x^2 -0.00011x^3 ,.................................................... to find maximize this function, we have to find differential and then equalize it to zero , so G'(x) = 0 -0.007 -0-1.42 +0.0134 x -0.00033x^2 = 0 ............................................................................................solving above equation , we have x = , getting complex no.s as solution ,can you confirm the cost and price functions if they are right. .............. but the method of solving this problem will be same as shown above.
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