A company memory chip ters establih nce-deman as: p(x) = 75 – 5x price-demand function C(x) = 130 + 16x cost function where p(x) is the wholesale price in dollars for x thousands of chips that can be sold. Both functi have the domain 1 sxs 25. a. Establish the revenue function R(x) and sketch it. b. Find the output that will produce the maximum revenue. c. Find the break-even points. d. Which output will result in a loss for the company?

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Please answer B-D with thorough explanations.

7. A company that sells memory chips for computers established the price-demand and cost functions
as:
p(x) = 75 – 5x
price-demand function
C(x) = 130 + 16x cost function
where p(x) is the wholesale price in dollars for x thousands of chips that can be sold. Both functions
have the domain l<x< 25.
a. Establish the revenue function R(x) and sketch it.
b. Find the output that will produce the maximum revenue.
c. Find the break-even points.
d. Which output will result in a loss for the company?
Transcribed Image Text:7. A company that sells memory chips for computers established the price-demand and cost functions as: p(x) = 75 – 5x price-demand function C(x) = 130 + 16x cost function where p(x) is the wholesale price in dollars for x thousands of chips that can be sold. Both functions have the domain l<x< 25. a. Establish the revenue function R(x) and sketch it. b. Find the output that will produce the maximum revenue. c. Find the break-even points. d. Which output will result in a loss for the company?
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