Second derivatives and profit function-lemonade stand

Reference no: EM13128464

A. Write a function for your profits for each price you charge. This is done by multiplying (P-.5) times your function (y= -100x + 250). I.e. if your function is Cups Sold = 1000 - 100P, your profit function would be (P - .5)*(1000 - 100P).

B. Calculate the first derivative of your profit function, and create another table with the price, profit, and value of the first derivative at the prices below. Can you tell what your profit maximizing price is from this table?

Price x Profit the derivative

0.25 -56.25 250

0.5 0 200

0.75 43.75 150

1 75 100

1.25 93.75 50

1.5 100 0

1.75 93.75 -50

2 75 -100

2.25 43.75 -150

2.5 0 -200

C. Calculate the second derivative, and also use the first derivative to find the profit maximizing price. What is the price, and what does the second derivative tell you?

Reference no: EM13128464

Questions Cloud

Change in the loss rate on warranty costs : A change in the loss rate on warranty costs is a: a) Change in accounting principle b) Change in accounting estimate c) Change in reporting entity D) Error correction.

Illustrate what amount of interest expense was paid in cash : Classic Corporation borrowed $90,000 from the bank on November 1, 2012. The note had an 8 percent annual rate of interest and matured on April 30, 2013. Interest and principal were paid in cash on the maturity date. Illustrate what amount of inter..

Analysis of suitability of e-business venture : Conduct the analysis using the information on the organisation as well as the country you have been assigned. This analysis should be performed using the following technique:

What is meant by a molecules handedness : Important information about Organic molecules, What is meant by a molecules "handedness"? Can all organic molecules exhibit this property? What makes such a property possible?

Second derivatives and profit function-lemonade stand : Write a function for your profits for each price you charge. This is done by multiplying (P-.5) times your function (y= -100x + 250). I.e. if your function is Cups Sold = 1000 - 100P, your profit function would be (P - .5)*(1000 - 100P).

What is xyz federal income tax liability : Company ABC, is an exempt medical organization. XYZ, Inc., a sporting goods retailer, is a wholly owned subsidiary of Company ABC. Company ABC inherited the XYZ stock last year from a major benefactor of the medical organization. XYZ's taxable inc..

Create a farewell speech : Create a farewell speech that includes good memories from class and well wishes for your classmates. Write 400-500 world and Develop a 4-5 slide PowerPoint presentation to use in conjunction with your speech.

What mass of the gas dissolves in water : .At 25°C and 1.0 atm, 0.25 g of a gas dissolves in 1.00 L of water. What mass of the gas dissolves in 1.00 L of water at 25°C and 3.0 atm?

How will foreign standards affect your audit plan : How will foreign standards affect your audit plan and sampling techniques used to validate original transactions?

User Account

All Pages