Scroll to Top

Virtual Math Learning Center

Virtual Math Learning Center Texas A&M University Virtual Math Learning Center

Finding the Price to Maximize Profit

Author: ShaNisaa RaSun

The following problem is solved in this video. It is recommended that you try to solve the problem before watching the video. You can click "Answer" to reveal the answer to the problem.

Problem: A company that makes toy firetrucks has a price-demand function given by \(p(x)=-0.02x+45,\) where \(x\) is the number of trucks sold at a price of \(\$p\) each. The company has a weekly cost function, in dollars, given by \(C(x)=12x+1000,\) where \(x\) is the number of trucks manufactured each week. Determine the selling price of each truck that will maximize the company's profit.

The selling price of each truck that will maximize the company's profit is \(\$28.50.\)

See more videos from this section