Rates of Change in Applied Contexts

AP Calculus AB· difficulty 2/5

If P(x)=R(x)C(x)P(x) = R(x) - C(x) is profit, profit is maximized when

  • A

    x=0x = 0

  • B

    R(x)=C(x)R'(x) = C'(x)

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  • C

    R(x)=C(x)R(x) = C(x)

  • D

    P(x)=0P(x) = 0

Explanation

P(x)=0R(x)=C(x)P'(x) = 0 \Rightarrow R'(x) = C'(x) — marginal revenue equals marginal cost.

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