CA Foundation P3 · Chapter 8 · Question 5 of 9
The profit function of a firm is P = −2x² + 120x − 500 (in ₹). The maximum profit is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) ₹1,300
Explanation
dP/dx = −4x + 120 = 0 gives x = 30, and d²P/dx² = −4 < 0 confirms a maximum. P(30) = −2(900) + 3,600 − 500 = −1,800 + 3,600 − 500 = ₹1,300. Ignoring the sign of −2x² gives ₹4,900.
More Basic Applications of Differential and Integral Calculus in Business and Economics MCQs
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