Profit Maximization

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Profit Maximization

RichaS


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Re: Profit Maximization

Abhitesh
Take 2 cases.
Case 1 - p<=5
profit, P = 100p-p^2+pn. This is a quadratic equation plot its graph. Graph increases from P=0 at p=0 to P=475+5n at p=5.
So the maximum profit that can be earned is 475+5n.

Case 2 - p>5
P= 100p-p^2. Maximum profit in this case is 2500.

From these we conclude that p= 50 if 475+5n<2500 or n<405.
p=5 if n>=405