A trader realises 10x – x(^2) Naira profit from the sale of x bags of corn. How many bags will give him the maximum profit?
-
A.
7 -
B.
6 -
C.
5 -
D.
4
Correct Answer: Option C
Explanation
Profit (P) = 10(_x) − (_x)2
Maximum profit can be achieved when the differential of profit with respect to number of bags(x) is 0
i.e. (frac{dp}{dx}) = 0
(frac{dp}{dx}) = 10 – 2x = 0
10 = 2x
Then x = (frac{10}{2}) = 5
Answer is C
There is an explanation video available below.