Question: QUESTION THREE The cost function for a new commodity is given by C(Q) ~ 4Q + 30, where Q is the number sold in thousands.

QUESTION THREE The cost function for a new commodity is given by C(Q) ~ 4Q + 30, where Q is the number sold in thousands. The revenue function, R(Q) can be deduced from the graph below. Required: Determine the number of items that must be sold for the company to break even. (5 Marks)

Determine the number of items that must be sold to maximize profit and the maximum profit. Provide evidence that indeed profit is maximum. (3 Marks)

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