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d. What is the marginal profit? $/item

d. What is the marginal profit? $/item

ENGR.ECONOMIC ANALYSIS
ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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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: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
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
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. 

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