The profit function for an operation is given by \P(x, y) = 220

ukelangf0

ukelangf0

Answered question

2021-11-13

The profit function for an operation is given by
P(x,y)=2200+24xx2+80yy2
where x is the cost of a unit of labor and y the cost of one item. Find the maxBimum amount of profit that can be generated from this operation. Itis necessry to do a prospective analysis of the profitability of this operation. Determine the approximate increase or decrease in profit if the units of labor increases from 12 to 13 while the price of an item remains the same at 40. Also, what if the labor remains steady at 12 but the price increase from 40 to 41?

Answer & Explanation

Onlaceing

Onlaceing

Beginner2021-11-14Added 15 answers

Step1
Optimization problem can be solved using the constraints provided in the problem. Equation of a circle has standard form,
(xh)2+(yk)2=r2 , where (h,k) is the center of the circle and ris the radius of the circle.
In an optimization equation involving a circle, max/min will occur at the boundary at the extreme points. If one can graph the equation it can be easier to visualize the problem.
Step2
Given equation is
P(x,y)=2200+24xx2+80yy2
=2200(x224x+144144)(y280y+16001600)
=2200(x12)2+144(y40)2+1600=3944(x12)2(y40)2
Above equation is a equation for circle, we can find max/min at critical point for f1=0
x=2(x12)=0
x=12
y=2(y40)=0
y=40
Hence the max will occur for above values.
Value at max will be 3944
Change in profit w.rt to one of teh variable will be derived from partial differentiation of the function.
Change in profit =2(1312)(=2)
Change in profit for price increase =2(4140)(=2)

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