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Question 1: A manufacturer produces printer paper at a cost of $2 per ream. When she sets the price at $4, she sells 5,000 reams
Question 1:A manufacturer produces printer paper at a cost of $2 per ream. When she sets the price at $4, she sells 5,000 reams per month. She has determined that for every $1 increase in price she will sell 200 less reams per month.
- W rite a function N(x) to model the number N of reams sold as a function of the selling price x.
- W rite a function C(x) to model the cost of producing N(x) reams.
- W rite a function P(x) to model the profit of producing N(x) reams. Please remember, the profit equals revenue- cost. Then graph P(x).
- What is the slope of the tangent line to the graph of P(x) at x = 14? What does that number represent?
- What is the slope of the secant line to the graph of P(x), through the points (14, P(14) and (20, P(20)) What does that number represent?
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