You are selling ice cream bars from a cart. You sell them for $0.75 per bar. Your cost for the ice cream is $0.30 per bar, and your cost for the rental of the cart is $50. a) Write a formula for your profit from selling ice cream bars. Be sure to identify all your variables and the units used. b) What is the slope of the profit function? What is its meaning in terms of selling ice cream bars? c) What is the vertical intercept of the profit function? What is its meaning in terms of selling ice cream bars? d) What is the horizontal intercept of the profit function? What is its meaning in terms of selling ice cream bars?
You are selling ice cream bars from a cart. You sell them for $0.75 per bar. Your cost for the ice cream is $0.30 per bar, and your cost for the rental of the cart is $50. a) Write a formula for your profit from selling ice cream bars. Be sure to identify all your variables and the units used. b) What is the slope of the profit function? What is its meaning in terms of selling ice cream bars? c) What is the vertical intercept of the profit function? What is its meaning in terms of selling ice cream bars? d) What is the horizontal intercept of the profit function? What is its meaning in terms of selling ice cream bars?
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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You are selling ice cream bars from a cart. You sell them for $0.75 per bar. Your cost for the ice cream is $0.30 per bar, and your cost for the rental of the cart is $50.
a) Write a formula for your profit from selling ice cream bars. Be sure to identify all your
variables and the units used.
b) What is the slope of the profit function? What is its meaning in terms of selling ice
cream bars?
c) What is the vertical intercept of the profit function? What is its meaning in terms of
selling ice cream bars?
d) What is the horizontal intercept of the profit function? What is its meaning in terms
of selling ice cream bars?
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