For a certain company, the cost function for producing z items is C(x) = 40 z + evenue function for selling z items is R(z) = -0.5(x – 120)2 + 7,200. The maxir f the company is 160 items. %3D e profit function P(x) is the revenue function R(r) (how much it takes in) minus th r) (how much it spends). In economic models, one typically assumes that a con ximize its profit, or at least make a profit! swers to some of the questions are given below so that you can check your work. Assuming that the company sells all that it produces, what is the profit function? P(z) = 固助, %3D Hint: Profit = Revenue - Cost as we examined in Discussion 3. %3D What is the domain of P (x)? Hint: Does calculating P(x) make sense when x = 10 or r = 1,000? The company çan choose to produce either 80 or 90 items. What is their profit for e

College Algebra
10th Edition
ISBN:9781337282291
Author:Ron Larson
Publisher:Ron Larson
Chapter4: Rational Functions And Conics
Section4.2: Graphs Of Rational Functions
Problem 88E
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For a certain company, the cost function for producing z items is C (x) = 40 + 200 and the
revenue function for selling r items is R(z) =-0.5(x – 120)² + 7,200. The maximum capacity
of the company is 160 items.
The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function
C (x) (how much it spends). In economic models, one typically assumes that a company wants to
maximize its profit, or at least make a profit!
Answers to some of the questions are given below so that you can check your work.
1. Assuming that the company sells all that it produces, what is the profit function?
P(x) =
Hint: Profit = Revenue - Cost as we examined in Discussion 3.
2. What is the domain of P(r)?
Hint: Does calculating P(x) make sense when a =
10 or a = 1,000?
3. The company can choose to produce either 80 or 90 items. What is their profit for each case, and
which level of production should they choose?
Profit when producing 80 items =
Number
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Transcribed Image Text:For a certain company, the cost function for producing z items is C (x) = 40 + 200 and the revenue function for selling r items is R(z) =-0.5(x – 120)² + 7,200. The maximum capacity of the company is 160 items. The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C (x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit! Answers to some of the questions are given below so that you can check your work. 1. Assuming that the company sells all that it produces, what is the profit function? P(x) = Hint: Profit = Revenue - Cost as we examined in Discussion 3. 2. What is the domain of P(r)? Hint: Does calculating P(x) make sense when a = 10 or a = 1,000? 3. The company can choose to produce either 80 or 90 items. What is their profit for each case, and which level of production should they choose? Profit when producing 80 items = Number Save Quit & Save Previous Unit item Next Unit Item
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