Tutorial Exercise The cost per unit of producing a product is 60 + 0.2x dollars, where x represents the number of units produced per week. If the equilibrium price determined by a competitive market is $80, how many units should the firm produce and sell each week to maximize its profit? Step 1 We want to maximize profit for the production and sale of a product. We know that the cost of producing one unit of a product is 60 + 0.2x, and thus the cost of producing x units of a product is C(x) = Since the price per unit in the market is $80, the revenue function is given by R(Y) = ( 1)x The profit function to be maximized is P(x) = R(x) - C(x) = 80x- Il + x.