If the cost function and revenue function of x units of an item are given by $C(x)=25x^2-x$ and $R(x)=4x$. Then the number of items to be produced to have maximum profit is,
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → $\frac{1}{10}$
The profit function P(x) is,
$P(x)=R(x)-C(x)$
$=4x-(25x^2-x)$
$=-25x^2+5x$
for max. profit, $P'(c)=0$
$⇒-50c+5=0$
$⇒c=\frac{1}{10}$