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consider the cost fucntion c(x)=6x^2+14x+18?
i just need help with part c and part d
part c says
let r(x)= -x^2+37x+38 denote the revenue in thousands of dollars generated from the production of x units what is the breakeven point (recall that the breakeven point is when revenue is equal to cost)
-i tried setting them equal but did not get the correct answer
part d
comute and compare the marginal revenue and margianl cost at the break even point should the company increaese production beyond breakeven point justify your answer using marginals
thank you for reading over this and helping!
2 Answers
- ?Lv 73 years ago
// You haven't provided information about the cost function c(x); I'm assuming it
// denotes x as the number of units and the cost is in thousands of dollars ?
// It has to have the same units as the revenue function.
c(x) = 6x² + 14x + 18
r(x) = -x² + 37x + 38
// The breakeven point occurs where the two functions intersect, in other words,
// where c(x) = r(x)
c(x) = r(x) ⇒
6x² + 14x + 18 = -x² + 37x + 38
7x² - 23x - 20 = 0
// Factor and solve for x
(7x + 5)(x - 4) = 0
x = -5/2 or 4
// we can ignore the solution x = -5/2 because it doesn't make sense to have
// negative #units
When x = 4
.....c(4) = 6(4)² + 14(4) + 18 = 170
.....r(r) = -4² + 37(4) + 38 = 170
So your break even point is at x=4, and y = 170.........ANS
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