First, let's calculate the Profit functions which is P(x)=R(x)-C(x)
Let's continue simplifying the function
The profit function is a polynomial function, so the domain is all the real numbers which means x can be any real number
Domain=(-∞,∞)
Calculating x=-10 doesn't make sense because x in all the functions is the number of items, and doesn't make sense to have -10 items, so x shouldn't be negative numbers.
And Calculating x=1000 doesn't make sense either because the problem says "The maximum capacity of the company is 110 items" so if we have x=1000 we are exceeding the limit of items that the company can handle.
Now let's calculate the profit when producing 40 and 50 items (we just need to evaluate those values in the function):
The profit when the company produces 50 items is 500 and the profit when the company produces 40 items is 550.
The company should choose to produce 40 items because is a higher profit in contrast to making 50 items.
According to the function, when we replace the values in X we can see that the term (X^2) grows more than the term X and as you can see the term X^2 is negative which decreases the final result of the profit. Another way to see this is by drawing the function
As you can see the function is a parable and when the number of items "X" is very high the function tends to decrease. The function starts to grow in profit until 40 items (when you find the maximum value of profit) and then the profit function decreases.
