The profit function P(x) is the revenue function R(x) (how much it takes in) minus the cost function C(x) (how much it spends). In economic models, one typically assumes that a company wants to maximize its profit, or at least make a profit! Part A: Answer the following questions about the cost function C(2) and the revenue function R(x).
1. What is the domain and range of C (x)?
2. What is the meaning of the slope and intercept of C(x)?
3. At what production level 2 will the company receive the most revenue?
Part B. Answer the following questions about the profit function P(x).
4. Assuming that the company sells all that it produces, what is the profit function?
5. Why is finding the range of P(x) important?
6. The company can choose to produce either 60 or 70 items. What is their profit for each case, and which level of production should they choose?
7. Can you explain, from our model, why the company makes less profit when producing 10 more units?

Solution :

a).

1. The domain of C(x)

Range of c(x) is

Since the negative value do not make any sense.

2. C(x) =  Ax + b

  Intercept here denotes the fixed cost (that is when x = 0)

  The slope indicates the marginal cost (that is increase in cost per unit of quantity)

3. Revenue is maximum marginal revenue = 0

(that is when at the top of the parabola)

4. Profit = R(x) -C(x)

5. Range of P(x) is important so that we have the idea in mind about the maximum loss and the maximum profit for a particular quantity.

6 and 7 -- insufficient data.

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step-by-step explanation:

step-by-step explanation: so we look at the formula un = a + (n-1)d

un is the amount of seats

n is the nth term aka row number

a is the original sequence/row number

d is the difference between each term

so in this a=22 d=6 and n can remain as n because we are simply formjng a rule

lets put these in the equation

un=22+(n-1)(6)

this is your answer to part a

however

lets double check that this is correct, we'll try putting it into the second term

un=a+(n-1)d

u2=22+(2-1)(6)

u2=22+6

u2=28

as the question said the second row has 28 seats so now we know the formula we made is correct.

as for part b

un=a+(n-1)

its asking us to find a row with 100 seats.

remember un was the amount of seata so all we do is substitute this in.

un=100 a=22 d=6

un=a+(n-1)d

100=22+(n-1)(6)

so now we simplify to find n which is the row number.

100-22=22+(n-1)(6)-22

78=(n-1)(6)

78/6=(n-1)(6)/6

13=n-1

13+1=n-1+1

14=n

so now we know that in the 14th row there is 100 seats.

hope this and that you understood! its my first time using the app or anyone out on here : p its also me to revise so a bunch! ask more questions if you dont understand ☺