Question:
Mr. Avinash manufactures and sells a single product at a fixed price in a niche market. The selling price of each unit is ` 30. On the other hand, the cost, in rupees, of producing x units is $240 + bx + cx^2$ , where b and c are some constants. Avinash noticed that doubling the daily production from 20 to 40 units increases the daily production cost by 66.66 percent. However, an increase in daily production from 40 to 60 units results in an increase of only 50 percent in the daily production cost. Assume that demand is unlimited and that Avinash can sell as much as he can produce. His objective is to maximize the profit. How many units should Mr. Avinash produce daily?
Mr. Avinash manufactures and sells a single product at a fixed price in a niche market. The selling price of each unit is ` 30. On the other hand, the cost, in rupees, of producing x units is $240 + bx + cx^2$ , where b and c are some constants. Avinash noticed that doubling the daily production from 20 to 40 units increases the daily production cost by 66.66 percent. However, an increase in daily production from 40 to 60 units results in an increase of only 50 percent in the daily production cost. Assume that demand is unlimited and that Avinash can sell as much as he can produce. His objective is to maximize the profit. How many units should Mr. Avinash produce daily?
Updated On: Jul 26, 2024
- 70
- 100
- 130
- 150
- 180
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The Correct Option is B
Solution and Explanation
The correct option is (B): 100
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