Q.Find the maximum profit that a company can make, if the profit function is given by
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Start your 14-day free trial to unlock the full solution →A quadratic profit function with a negative coefficient opens downward, so its maximum occurs at the vertex. For , the vertex is at , giving a maximum profit of .
The key insight here is that the profit function is a quadratic — a parabola. When the coefficient of is negative, the parabola opens downward, meaning it has a single highest point (a maximum) and no minimum. In business problems, this shape is common: profit often rises to a peak at some optimal production level, then falls.
For any quadratic , the vertex (where the maximum or minimum occurs) is at . This formula comes from calculus (setting the derivative to zero) or from completing the square — either way, it’s the exact point where the parabola turns around.
Let’s apply it step by step.
- Identify the coefficients. The profit function is . Rewrite it in standard form:
So , , .
- Find the vertex’s x-coordinate. Using :
The maximum profit occurs at .
A common mistake is to forget the negative signs. Here , so , and . The result is negative — that’s fine; could represent something like a price change or time before launch, not necessarily a physical quantity that must be positive. …
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