Question

You operate an iPod refurbishing service (a typical refurbished iPod might have a custom color case with blinking lights and a personalized logo). The cost to refurbish x iPods in a month is calculated to be: C(X)=0.25x² +40x+1000 You charge customers $80 per iPod for the work.

a. Calculate the marginal revenue and marginal profit functions and interpret the results. Show how you arrive at your answers.

b. Compute the revenue and the profit, and also the marginal revenue and marginal profit, if you have refurbished 20 units this month. Interpret the results.
c. For which value of x is the marginal profit zero? Interpret your answer.

Answer 1

b) TR 80 20) lovo Te o-25(20) +10(2 )+1000 = 30