The profit equation for a coffee shop is P(n) = –5n² + 60n – 100, where n is the number of customers, in tens of thousands (10000)., and P(n) is the profit, in thousands of dollars (1000). a. What is the profit if the shop has no customers? b. How many customers must visit the shop for it to break-even? c. How many customers need to visit for the shop to have its maximum profit and what is the shop's maximum profiť?

The profit equation for a coffee shop is P(n) = –5n² + 60n – 100, where n is the number of customers, in tens of thousands (10000)., and P(n) is the profit, in thousands of dollars (1000). a. What is the profit if the shop has no customers? b. How many customers must visit the shop for it to break-even? c. How many customers need to visit for the shop to have its maximum profit and what is the shop's maximum profiť?

ENGR.ECONOMIC ANALYSIS

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ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Cost of Production

The entire idea of the cost of production or production cost is applied corresponding, or we can say that it is related to monetary cost. Money cost refers to any money expenditure which the firm or supplier, or producer undertakes in purchasing or hiring factor of production or factor services.

Question

4. The profit equation for a coffee shop is P(n) = –5n + 60n – 100, where n is the number of
customers, in tens of thousands (10000), and P(n) is the profit, in thousands of dollars (1000).
a. What is the profit if the shop has no customers?
b. How many customers must visit the shop for it to break-even?
c. How many customers need to visit for the shop to have its maximum profit and what is the
shop's maximum profit?

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