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The profit function, in rupees, of a fir...

The profit function, in rupees, of a firm selling t items `(x ge 0)` per week is given by `P(x) =-3500 + (400-x)x`. How many items should the firm sell so that the firm has maximum profit

A

400

B

30

C

200

D

200

Text Solution

AI Generated Solution

The correct Answer is:
To find the number of items the firm should sell to maximize profit, we will follow these steps: ### Step 1: Write down the profit function The profit function is given by: \[ P(x) = -3500 + (400 - x)x \] ### Step 2: Simplify the profit function We can expand the profit function: \[ P(x) = -3500 + 400x - x^2 \] So, the profit function becomes: \[ P(x) = -x^2 + 400x - 3500 \] ### Step 3: Differentiate the profit function To find the maximum profit, we need to differentiate \( P(x) \) with respect to \( x \): \[ P'(x) = \frac{d}{dx}(-x^2 + 400x - 3500) \] Using the power rule, we get: \[ P'(x) = -2x + 400 \] ### Step 4: Set the derivative equal to zero To find the critical points, we set the derivative equal to zero: \[ -2x + 400 = 0 \] ### Step 5: Solve for \( x \) Now, we solve for \( x \): \[ 2x = 400 \] \[ x = 200 \] ### Step 6: Conclusion The firm should sell **200 items** per week to maximize profit.
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