Question #11147

A manufacturer can sell ‘X’– X items per unit. The cost of manufacturing X units is given by Rs (X2 + 10X + 12). How many units should he manufacture to maximize his profit? Also find this profit.
Note : X2 => x squared => x to the power 2

Expert's answer

MR = MC = P

In economics,**profit maximization** is the short run or long run process by which a firm determines the price and output level that returns the greatest profit. There are several approaches to this problem. The total revenue–total cost

perspective relies on the fact that profit equals revenue minus cost and focuses

on minimizing this difference, and the marginal revenue–marginal cost perspective is based on the fact that total profit reaches its maximum point where marginal

revenue equals marginal cost.

MC = TC' = (X2 + 10X +12)' = 2X +10

He should manufacture 2X + 10 units to maximize his profit

In economics,

perspective relies on the fact that profit equals revenue minus cost and focuses

on minimizing this difference, and the marginal revenue–marginal cost perspective is based on the fact that total profit reaches its maximum point where marginal

revenue equals marginal cost.

MC = TC' = (X2 + 10X +12)' = 2X +10

He should manufacture 2X + 10 units to maximize his profit

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