1.

Maximisation of Profit.

Answer»

If R = Total revenue, C = Total production cost, then profit P = R – C.
The conditions for maximisation of profit are as follows:

  • Necessary condition: \(\frac{dP}{dx }\)= 0
  • Sufficient condition: \(\frac{d^2P}{dx^2 }\)< 0 (Negative)


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