Question: A quadratic revenue function often occurs in practice. The reason is that as more units are produced, the price must be lowered in order to

A quadratic revenue function often occurs in practice. The reason is that as more units are produced, the price must be lowered in order to sell them all.

a) A company has found that if they produce x units of a product, they must sell them each at $10 - 0.2x if they are to sell all of them. Determine the revenue function.

b) Their fixed costs are $40 and their variable costs per unit are $1. Determine the cost and profit functions.

c) Graph all three functions (Revenue, Profit and Cost on the same graph) over an appropriate range.


Step by Step Solution

3.46 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Number of units produced x 3D Selling foice of Cach itom Selenue function Rx 100... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!