Solve the Problem
-The Owner of a Video Store Has $\mathrm { P }$

question 128

Multiple Choice

Solve the problem
-The owner of a video store has determined that the profits $\mathrm { P }$ of the store are approximately given by $\mathrm { P } ( \mathrm { x } ) = - \mathrm { x } ^ { 2 } + 80 \mathrm { x } + 72$ , where $\mathrm { x }$ is the number of videos rented daily. Find the maximum profit to the nearest dollar.

• A) \(\$ 3200\)
• B) \(\$ 1600\)
• C) \(\$ 3272\)
• D) \(\$ 1672\)

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Definitions:

Short-Run Supply Curve

A graphical representation showing the quantity of a good that producers are willing and able to sell at different prices over a short period.

Marginal Cost Curve

A graph showing the change in the cost of producing one more unit of a good as production levels change.

Short-Run Supply Curve

A graphical representation showing the quantity of goods a firm is willing to supply at different price levels in the short term, holding some inputs fixed.

Shutdown Point

The level of operation at which a firm's total revenue is equal to its total variable costs, below which the firm should cease production to minimize losses.