If a firm's profit is Z = 12x - 6x² + 30, and their minimum production level of x is equal to 0.5, then the level of x that maximizes profit is: A) .5 B) 1 C) 1.5 D) 2

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Quizplus · Accepted Answer

To find the level of x that maximizes profit, we first need to find the derivative of the profit function Z with respect to x, which gives us Z' = 12 - 12x. Setting this equal to 0 to find the critical points gives us 12 - 12x = 0, which simplifies to x = 1. This is the level of x that maximizes profit, given that the minimum production level is 0.5 and falls within the feasible range.

If a Firm's Profit Is Z = 12x - 6x2

If a Firm's Profit Is Z = 12x - 6x²