A company has cost function C(q) = 5000 + 4g dollars and revenue %3D function R(g) = 12q dollars. (a) What are the fixed costs for the company? The fixed costs are $ (b) What is the marginal cost? The marginal cost is $ per chair. (c) What price is the company charging for its product? The price is $
A company has cost function C(q) = 5000 + 4g dollars and revenue %3D function R(g) = 12q dollars. (a) What are the fixed costs for the company? The fixed costs are $ (b) What is the marginal cost? The marginal cost is $ per chair. (c) What price is the company charging for its product? The price is $
Chapter3: Functions
Section3.3: Rates Of Change And Behavior Of Graphs
Problem 3SE: How are the absolute maximum and minimum similar to and different from the local extrema?
Related questions
Question
Transcribed Image Text:A company has cost function C(q) = 5000 + 4g dollars and revenue
function R(g) = 12q dollars.
(a) What are the fixed costs for the company?
The fixed costs are $
(b) What is the marginal cost?
The marginal cost is $
per
chair.
(c) What price is the company charging for its product?
The price is $
(d) Graph Cq) and R(q) on the same axes and label the break-even
point, go. Explain how you know the company makes a profit if
the quantity produced is greater than go-
The company makes a profit for q go because for these quantities
the revenue is greater than the cost.
(e) Find the break-even point qo-
The break even point is at q =
at which revenue
$
and cost
24
%3D
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Recommended textbooks for you