The monthly revenue R achieved by selling x wristwatches is figured to be R(x) = 75x - 0.2x2 . The monthly cost C of selling x wristwatches is C(x) = 32x + 1750.(a) How many wristwatches must the firm sell to maximize revenue? What is the maximum revenue?(b) Profit is given as P(x) = R(x) - C(x). What is the profit function?(c) How many wristwatches must the firm sell to maximize profit? What is the maximum profit?(d) Provide a reasonable explanation as to why the answers found in parts (a) and (c) differ. Explain why a quadratic function is a reasonable model for revenue.
The monthly revenue R achieved by selling x wristwatches is figured to be R(x) = 75x - 0.2x2 . The monthly cost C of selling x wristwatches is C(x) = 32x + 1750.(a) How many wristwatches must the firm sell to maximize revenue? What is the maximum revenue?(b) Profit is given as P(x) = R(x) - C(x). What is the profit function?(c) How many wristwatches must the firm sell to maximize profit? What is the maximum profit?(d) Provide a reasonable explanation as to why the answers found in parts (a) and (c) differ. Explain why a quadratic function is a reasonable model for revenue.
Algebra for College Students
10th Edition
ISBN:9781285195780
Author:Jerome E. Kaufmann, Karen L. Schwitters
Publisher:Jerome E. Kaufmann, Karen L. Schwitters
Chapter8: Functions
Section8.CR: Review Problem Set
Problem 50CR
Related questions
Topic Video
Question
The monthly revenue R achieved by selling x wristwatches is figured to be R(x) = 75x - 0.2x2 . The monthly cost C of selling x wristwatches is C(x) = 32x + 1750.
(a) How many wristwatches must the firm sell to maximize revenue? What is the maximum revenue?
(b) Profit is given as P(x) = R(x) - C(x). What is the profit function?
(c) How many wristwatches must the firm sell to maximize profit? What is the maximum profit?
(d) Provide a reasonable explanation as to why the answers found in parts (a) and (c) differ. Explain why a quadratic function is a reasonable model for revenue.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, calculus and related others by exploring similar questions and additional content below.Recommended textbooks for you
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra for College Students
Algebra
ISBN:
9781285195780
Author:
Jerome E. Kaufmann, Karen L. Schwitters
Publisher:
Cengage Learning
College Algebra
Algebra
ISBN:
9781305115545
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
Algebra and Trigonometry (MindTap Course List)
Algebra
ISBN:
9781305071742
Author:
James Stewart, Lothar Redlin, Saleem Watson
Publisher:
Cengage Learning
