Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

You have started a successful start up company that produces eco - boxes. Each eco box has items that contribute to reducing pollution. You model

You have started a successful start up company that produces eco-boxes. Each eco box has items that contribute to reducing pollution.
You model the monthly revenue of your business by the function
R(x)=5x2+5, the monthly cost by the function C(x)=2x+1 where is the number of months your business has been operating. Use the equations, to answer the questions below.
Equations:
R(x)= Revenue C(x)= Cost
P(x)= Profit =R(x)-C(x)
AC(x)= Cost per month =Cxx
AP(x)= Profit per month =P(x)/x
Graph the revenue function, R(x), and the cost function, C(x), by hand and use the graphs to explain how your company is doing.
State and graph the average cost function AC(x) by hand. Show all the characteristics and behaviour near asymptotes. Include labels and scale. What does this function tell you about how the monthly cost is changing?
State and graph the average profit per month AP(x) function by hand or using Desmos. State all asymptotes. Include labels and scale. What does this function tell you about how the profit per month is changing?
Interpret the meaning of the horizontal asymptote in your average cost AC(x) function in the context of your business idea.
What will be the monthly profit after 1 year? Show all calculations Be sure to write the answers neatly and clearly
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Finance questions