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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?
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Before we look at this, let us learn what a multiple is. Take any number say 3. Multiply this number with natural numbers. We obtain 3, 6, 9, 12, 15, 18,.........
NATURAL NUMBERS The numbers 1, 2, 3, 4.... Are called as natural numbers, their set is shown by N. Hence N = {1, 2, 3, 4, 5....} WHOLE NUMBERS The numbers 0, 1, 2, 3, 4
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