1. **State the problem:** We are given the price function $p = 80 - 0.01x$ and the cost function $C = 20x + 5000$. We need to find the production level $x$ that maximizes profit.
2. **Formula for profit:** Profit $P$ is revenue minus cost. Revenue $R$ is price times quantity, so:
$$P(x) = R(x) - C(x) = p \times x - C(x) = (80 - 0.01x)x - (20x + 5000)$$
3. **Express profit function:**
$$P(x) = 80x - 0.01x^2 - 20x - 5000 = (80x - 20x) - 0.01x^2 - 5000 = 60x - 0.01x^2 - 5000$$
4. **Find critical points:** To maximize profit, take derivative and set to zero:
$$P'(x) = 60 - 0.02x$$
Set $P'(x) = 0$:
$$60 - 0.02x = 0$$
$$0.02x = 60$$
$$x = \frac{60}{0.02}$$
$$x = 3000$$
5. **Check second derivative to confirm maximum:**
$$P''(x) = -0.02 < 0$$
Since $P''(x) < 0$, $x=3000$ is a maximum.
6. **Conclusion:** The production level for maximum profit is $\boxed{3000}$ units.
Among the options, the correct answer is d) $x=3000$.
Max Profit Ab30Ff
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