Digital SATMath: Advanced MathMedium

A company's monthly profit P(x), in thousands of dollars, from selling x units of a product, is modeled by the function P(x) = -2x^2 + 20x - 18. What is the maximum profit the company can achieve?

  1. A32 thousand dollars
  2. B8 thousand dollars
  3. C50 thousand dollars
  4. D10 thousand dollars
Show answer & explanation

Correct answer: A. 32 thousand dollars

The profit function is a quadratic equation P(x) = -2x^2 + 20x - 18. Since the leading coefficient (-2) is negative, the parabola opens downward, and the vertex represents the maximum profit. First, find the x-coordinate of the vertex using x = -b/(2a): x = -20/(2*(-2)) = -20/(-4) = 5. This means the maximum profit occurs when 5 units are sold. Now, substitute x=5 back into the profit function to find the maximum profit: P(5) = -2(5)^2 + 20(5) - 18 = -2(25) + 100 - 18 = -50 + 100 - 18 = 50 - 18 = 32.

Why the other options are wrong

  • B. Incorrect calculation; perhaps an error in the vertex formula or substitution.
  • C. Incorrect calculation; a common error might be miscalculating -2(25) or 20(5).
  • D. This is the x-value (number of units) at which the maximum profit occurs, not the maximum profit itself.

Maximum/Minimum of a Quadratic Function (Vertex)

The maximum or minimum value of a quadratic function f(x) = ax^2 + bx + c is the y-coordinate of its vertex, found by evaluating f(-b/(2a)).

  • If a > 0, the vertex is a minimum.
  • If a < 0, the vertex is a maximum.
  • The x-coordinate of the vertex is -b/(2a).

Memory trick: Find the peak's x, then find the peak's y.

More Math: Advanced Math questions