CMA Foundation · Fundamentals of Business Mathematics and Statistics · Calculus - Application in Business
A Kolkata firm has total revenue R = 80x - 2x^2 and total cost C = 20x + 150. What is the maximum profit in rupees?
Maximum profit is Rs 300. Profit equals 60x minus 2x squared minus 150, maximised at x = 15, giving 900 minus 450 minus 150 = 300.
- A300
- B450Correct
- C150
- D600
Explanation
Profit = 60x - 2x^2 - 150. Derivative 60 - 4x = 0 gives x = 15. Profit = 900 - 450 - 150 = 300. So the correct value is 300; 450 is the profit before deducting fixed cost of 150.
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