A company’s profit, P, in dollars, for producingx machines in one day is given by P = 500x - 20x*2.If the company produces 10 ma

Question

2 years ago

5

chines in one day, then,according to this formula, what is the profit for thatday?(A) $5,000(B) $4,000(C) $3,000(D) $2,000(E) $1,000

1 answer:

Slav-nsk [51] · Answer 1 · 2023-05-10T22:08:33+03:00

The profit of that day is (C) P = $3,000.

<h3>What is profit?</h3>

A profit is a difference between the revenue generated by an economic entity's outputs and the opportunity costs of its inputs.
Total revenue minus total cost, including both explicit and implicit costs, equals total revenue.
Unlike accounting profit, it only refers to the explicit costs that appear on a company's financial statements.
Accounting profit is calculated by subtracting the firm's total revenue from only the firm's explicit costs.
When analyzing a firm, an economist considers all opportunity costs, both explicit and implicit.

To find the profit of that day:

Given:

By substituting x = 10 in the above equation, we get:

Therefore, the profit of that day is (C) P = $3,000.

Know more about profits here:

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