Need calculus to complete this question about monopoly (show all work.)

Calculus
Tutor: None Selected Time limit: 1 Day

Nov 20th, 2015

Thank you for the opportunity to help you with your question!

Let the number of sheets be "r"

Cost of the sheet =r*$1=r,as $1 is required to make 1 sheet

From the equation,r=x^2

Therefore,C(x)=x^2---part(1)

Now the price demand equation,px=30

p(X)=30/x

Revenue =x*p(x)=30

Profit =P(x)-C(x) =>30-x^2

As x cannot be 0 therefore for the maximum profit he should produce 1 hat,

Maximum profit =30-1 =$29(ans)

I hope this would help you,but if you have any doubt regarding this,you can surely ask. :)
Nov 20th, 2015

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