Cost and revenue functions for a certain chemical manufacturer are given in the following figure. To maximize profit, how many tons should the company produce?

Question

Quizplus · Accepted Answer

To maximize profit, we need to find the point where the revenue function intersects with the cost function and then produce the corresponding amount of product. We can see from the graph that this occurs at approximately 22 tons (where the two lines intersect on the graph). At this point, the profit is approximately $16,000. Therefore, producing 22 tons will result in the greatest profit for the company.

Cost and Revenue Functions for a Certain Chemical Manufacturer Are