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The revenue and cost functions for producing and selling quantity x for a certain production facility are given below.
R(x) = 16x - x2
C(x) = 20 + 4x
a) Determine the profit function P(x).
b) Use Excel to graph the functions R(x), C(x) and P(x) for the interval 0≤ x ≤ 12. Copy and paste the graph below. Note: Use Scatter plot with smooth lines and markers.
c) Compute the break-even quantities.
d) Determine the average cost at the break-even quantities.
e) Determine the marginal revenue R'(x).
f) Determine the marginal cost C'(x)
g) At what quantity is the profit maximized?
What is the square root of 36? To search the square root (√) you ask yourself, "What number multiplied through itself gives me 36?" 6 .6 = 36; thus, 6 is the square root of 36.
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