Profit and Loss Optimisation
Calculus
Develop cost functions and explore the profits.
Where this idea comes from
Start here — this is the source that inspired this exploration.
Introduction
Economic Optimization: The Chocolate Problem You're selling chocolates at a party. At 1€ each, nobody will buy. Free? You'll give away 30 at most. There are costs: ingredients, kitchen fees. What price maximizes your profit?
Guiding Questions
- A small business sells one product. Sketch how cost and revenue depend on quantity.
- Build cost and revenue functions from realistic numbers, then find the profit-maximising quantity.
- How does the optimum respond to a price change or a fixed-cost increase?
- Add a second product or a bulk discount. What does the richer model say?