The marketing research department tor a computer company used a large city to test market the fim's new laptop. The department lound that the relationchip between pricep (dollars per uniti and demand x (unts cold per woek) was given approsimately by p900-0.12.0sxs65 So, weekly revenue can be approvimated by the following Graph the revenue funcdion R R-xp-900-012,0x65 Which graph below shows RO0? OD. 30.000 .000 1000 20.000

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
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Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
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Chapter8: Cost Analysis
Section: Chapter Questions
Problem 9E
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The marketing research department tor a computer company used a large city to test market the Sms new laptop. The department lound that the relationship between price p (dollars
per unit) and demand x (units sold per woek) was given approsimately by p 900-0.12x. 0sxs65 So, weekly revenue can be approvimated by the following Graph the revenue
fundion R
R-xp- 000x - 0.122, 0x65
Which graph below shows RO0?
O A.
OB
OD.
30,000
0.000
1,000-
20 000
Transcribed Image Text:The marketing research department tor a computer company used a large city to test market the Sms new laptop. The department lound that the relationship between price p (dollars per unit) and demand x (units sold per woek) was given approsimately by p 900-0.12x. 0sxs65 So, weekly revenue can be approvimated by the following Graph the revenue fundion R R-xp- 000x - 0.122, 0x65 Which graph below shows RO0? O A. OB OD. 30,000 0.000 1,000- 20 000
A company manufactures a variety of camp stoves at diferent locations. The total cost Co) (in dollars) of
producing x camp stoves per woek at plant Ais shown in the figure. Discuss the graph of the marginal cost
function C'x) and interpret the graph of C'(X) in temms of the efficiency of the production process at this plant
S100.000
$50,000
300
1000
Choose the corredt answer bolow.
O A. The graph of y=C'x) shows that the marginal cost function is positive and increasing Since marginal costs are increasing, the production process is becoming less efficient
as production increases,
OB. The graph of y = C'(x) shows that the marginal cost function is negative and increasing. Since marginal costs are increasing, the production process is becoming less efficier
as production increases,
OC. The graph of yC'x) shows that the marginal cost function is positive and decreasing. Since marginal costs are decreasing, the production process is becoming more
efficient as production increases
OD. The graph of y= C'(x) shows that the marginal cost function is negative and decreasing Since marginal costs are decreasing, the production process is becoming more
eticient as production increases.
Transcribed Image Text:A company manufactures a variety of camp stoves at diferent locations. The total cost Co) (in dollars) of producing x camp stoves per woek at plant Ais shown in the figure. Discuss the graph of the marginal cost function C'x) and interpret the graph of C'(X) in temms of the efficiency of the production process at this plant S100.000 $50,000 300 1000 Choose the corredt answer bolow. O A. The graph of y=C'x) shows that the marginal cost function is positive and increasing Since marginal costs are increasing, the production process is becoming less efficient as production increases, OB. The graph of y = C'(x) shows that the marginal cost function is negative and increasing. Since marginal costs are increasing, the production process is becoming less efficier as production increases, OC. The graph of yC'x) shows that the marginal cost function is positive and decreasing. Since marginal costs are decreasing, the production process is becoming more efficient as production increases OD. The graph of y= C'(x) shows that the marginal cost function is negative and decreasing Since marginal costs are decreasing, the production process is becoming more eticient as production increases.
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