Engineering Board Exam Reviewer · Cost Concepts and Economic Quantities · medium

The price of a product is p=500-2x pesos when x units are sold per period. Fixed cost is P10,000 and the variable cost is P100 per unit. Find the number of units that maximizes profit.

  1. 200 units
  2. 100 units
  3. 150 units
  4. 50 units

Answer

B. 100 units

Solution

Profit =(500-2x)x-10,000-100x=-2x2+400x-10,000. d/dx=-4x+400=0 x=100 units.

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