Question

3. As the number of units sold increases, market price decreases (supply and demand).       

     Suppose that p = 5000 – 0.75x , where p is the market price and x is the number of

     units sold. Suppose further that the cost of producing x items is given by

     C(x) = 3000 + 15x, and that the revenue from the sale of x units is given by

     R(x) = 120x.

    a. Express the cost as a function of price, p.

    b. Express revenue as a function of price, p.

    c. Given that profit is revenue minus cost, express profit as a function of price, p.

Answer 1

solve for x

.......cost function

......revenue function

profit function is

...........profit function