Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Need help with D please

Transcribed Image Text:A company tracking its profits notices that the
relationship between the number of items sold, x, and
the profit function, P(x), is linear. The company
knows that selling 190 items results in $3520 profit and
selling 240 items results in $6420 profit.
a. Which two (input, output) ordered pairs correspond
to the given data?
(190,240), (3520, 6420)
(3520,190, 6420, 240)
(190,3520), (240,6420)
58
(240,190),(6420,3520)
b. What is the slope of the profit function?
Part 2 of 5

Transcribed Image Text:selling 240 items results in $6420 profit.
a. Which two (input, output) ordered pairs correspond
to the given data?
(190,240), (3520, 6420)
(3520, 190, 6420, 240)
● (190,3520), (240,6420)
(240,190), (6420,3520)
b. What is the slope of the profit function?
58
d. What is the marginal profit?
Part 2 of 5
c. Find the profit function, P(x). Write your answer
in mx + b form.
P(x) = 58x - 7500
$/item
Part 3 of 5
Part 4 of 5
Expert Solution

Step 1: Define profit function.
The profit function shows the profit earned by a firm. Profit equals total revenue minus total costs.
In the given question, the relationship between the number of items sold x, and the profit function P(x) is linear.
Step by step
Solved in 3 steps with 2 images

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