ain company, the cost function for producing x x+100 and the revenue function for selling i .5(x - 120)2 +7,200. The maximum capacity of the co ction P(x) is the revenue function R(x) (how much it takes tion C (a) (how much it spends). In economic models, on a company wants to maximize its profit, or at least make a profit
ain company, the cost function for producing x x+100 and the revenue function for selling i .5(x - 120)2 +7,200. The maximum capacity of the co ction P(x) is the revenue function R(x) (how much it takes tion C (a) (how much it spends). In economic models, on a company wants to maximize its profit, or at least make a profit
Chapter3: Functions
Section3.2: Domain And Range
Problem 61SE: The cost in dollars of making x items is given by the function Cx)=10x+500. a. The fixed cost is...
Related questions
Question
![For a
certain
items is
company, the cost function for producing X
100 and the revenue function for selling
C (x)
=
40 x
items is
R(x) = -0.5(x – 120)² + 7,200. The maximum capacity of the company is
150 items.
The profit function P(x) is the revenue function R (x) (how much it takes in) minus
the cost function C(x) (how much it spends). In economic models, one typically
assumes that a company wants to maximize its profit, or at least make a profit!
Answers to some of the questions are given below so that you can check your work.
1. Assuming that the company sells all that it produces, what is the profit function?
P(x) =
Hint: Profit = Revenue - Cost as we examined in Discussion 3.
2. What is the domain of P(x)?
Hint: Does calculating P (x) make sense when x = -10 or x = 1,000?
3. The company can choose to produce either 80 or 90 items. What is their profit for
each case, and which level of production should they choose?
Profit when producing 80 items =
Number
Profit when producing 90 items = Number
4. Can you explain, from our model, why the company makes less profit when
producing 10 more units?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa0cced35-ae0d-464b-8bca-6dbaa684602c%2Fed8b3e21-53f4-4efe-b3b5-0bdc748327ef%2Fl30nsqw_processed.jpeg&w=3840&q=75)
Transcribed Image Text:For a
certain
items is
company, the cost function for producing X
100 and the revenue function for selling
C (x)
=
40 x
items is
R(x) = -0.5(x – 120)² + 7,200. The maximum capacity of the company is
150 items.
The profit function P(x) is the revenue function R (x) (how much it takes in) minus
the cost function C(x) (how much it spends). In economic models, one typically
assumes that a company wants to maximize its profit, or at least make a profit!
Answers to some of the questions are given below so that you can check your work.
1. Assuming that the company sells all that it produces, what is the profit function?
P(x) =
Hint: Profit = Revenue - Cost as we examined in Discussion 3.
2. What is the domain of P(x)?
Hint: Does calculating P (x) make sense when x = -10 or x = 1,000?
3. The company can choose to produce either 80 or 90 items. What is their profit for
each case, and which level of production should they choose?
Profit when producing 80 items =
Number
Profit when producing 90 items = Number
4. Can you explain, from our model, why the company makes less profit when
producing 10 more units?
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