SOLUTION: Quadratic functions are often used in economics to represent both the production cost function and the revenue function. Suppose that the cost C, in dollars of producing x mobile p
Question 637219: Quadratic functions are often used in economics to represent both the production cost function and the revenue function. Suppose that the cost C, in dollars of producing x mobile phones is given by
C(x) = 400 +8x + 0.1x2
Whilst the revenue function R, also in dollars is
R(x) = x(32 = 0.1x)
A point where the cost and the revenue are equal is called a break-even point.
(a) How many mobile phones need to be produced to break even? You must use algebra to answer this question.
(b) Find the cost(s) and revenue(s) corresponding to your solution(s) to part (a).
(c) Draw the graphs of both functions on the same set of axes for the domain 0 ≤ x ≤ 150.
Clearly indicate on your graph where all your solutions to parts (a) and (b) are. This graph may be drawn by hand or with software. Give your graph a title and label its axes appropriately.
