OPTIMIZATION IN BUSINESS AND ECONOMICS

C(x):  Total cost of producing x units

R(x):  Total revenue from the sale of x units

R(x) = x. p(x)

x = Number of product

p(x) = Demand function (also called price function) price per unit that a product can be sold at the production level of x units

P(x):  Total profit from the sale of x units

Profit = Revenue – Cost

P(x) = R(x) - C(x)

P(x) = 0 at the break-even points

P(x) = R(x) - C(x) = 0

C(x) = R(x)

Marginal cost:  dC/dx

Marginal revenue: dR/dx

Marginal profit: dP/dx