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The graphs of the revenue, R (@), and cost function , C (@), for the production and sale of & units are shown below. The
The graphs of the revenue, R (@), and cost function , C (@), for the production and sale of & units are shown below. The cost function is the straight line, and the revenue function is the curve. 60000 40000 20000 (o(7000) 74 0 0) R(x) o (0, 0) 200 400 600 800 1000 a. Use the graph to estimate the production level that maximizes profit. You may assume the value for the maximum profit is a multiple of 5. units b. What are the points (x, C (x)) and (x, R (x)) on the graphs of the cost and revenue functions corresponding to the value of c that maximizes profit? (x, C(x)) = (x, R(x)) c. What is the maximum profit? $ d. If the cost per unit decreases, should the production level be raised or lowered to maximize profit? lowered raised kept the same O O O
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