MATHEMATICS CCSS 2nd BACCALAUREATE Optimization
by a constant does not change the profit-maximizing product level. Therefore, the profit (maxima) as a function of prices (the function of
With these known, we can already pose the decision problem of maximum possible profit. In our model we will collect the relationship between the
SOLVED OPTIMIZATION PROBLEMS. Exercise 1 to obtain maximum profit. we must calculate the maxima and minima of the function )(.
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profit-maximizing firm is achieved when the difference between the
c) If we notice that the function that defines the profit is a quadratic function (parabola) concave downward. Therefore if we want to calculate the maximum,
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