Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Manufacturing Profit: Rafael estimates that it costs $14 to produce each unit of a particular commodity that sells for $23 per units. There is also

Manufacturing Profit: Rafael estimates that it costs $14 to produce each unit of a particular commodity that sells for $23 per units. There is also a fixed cost of $1200.

a. Express the cost C(x), the revenue R(x), and the profit P(x) as functions of the number of units x that are produced and sold.

b. How much profit is generated when x=2000, x=100. What is the smallest number of units that must be produced for Rafael's company to be profitable?

c. What is the average profit function AP(x)? What is the average profit when 2,500 units are produced?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Macroeconomics

Authors: Paul Krugman, Robin Wells, Iris Au, Jack Parkinson

3rd Canadian edition

1319120083, 1319120085, 1319190111, 9781319190118, 978-1319120054

More Books

Students also viewed these Economics questions

Question

N- D F B 5 ft 10 ft 10 ft 10 ft 5 ft x y

Answered: 1 week ago