Re: DSE 2014 doubt

Posted by onionknight on Jun 12, 2015; 4:51pm
URL: http://discussion-forum.276.s1.nabble.com/DSE-2014-doubt-tp7597718p7597722.html

Let price per unit be x
Maximise t-cx
subject to theta*sqrt(x)-t >=0

which boils down to maximizing theta*sqrt(x)-cx. Differentiate and set derivative=0, you'll get x=theta^2/4c^2

profit=theta^2/4c