Final answer:
The profit-maximizing quantity for the Ace Company is infinite, which means the maximum daily profit is also infinite.
Step-by-step explanation:
The profit-maximizing quantity for the Ace Company can be determined by finding the level of output where the difference between revenue and cost is the greatest.
To find this, we need to calculate the profit for different levels of production. The daily cost per unit is given by the equation 15 + 0.5x, where x represents the number of units produced. The daily revenue for selling x units is given by the equation 50x.
To find the profit, we subtract the cost from the revenue.
So, the profit function is given by 50x - (15 + 0.5x), which simplifies to 49.5x - 15. This profit function represents the profit earned by selling x units of the product.
To find the maximum daily profit, we need to find the value of x that maximizes the profit function.
Since the profit function is a linear function (a straight line), the maximum daily profit occurs at the highest value of x.
In this case, the highest value of x is infinite because the profit function keeps increasing as x increases. Therefore, the maximum daily profit is also infinite for the Ace Company.