Question

The Flip-Flop-Alot Company makes and sells flip-flops. They have one linear function that represents the cost of producing flip-flops and another linear function that models how much income they get from those flip-flops. Describe the key features that would determine if these linear functions ever intersected.

Answer 1

Well if you start at zero for the cost and go to $10 which would represent the cost of one flip-flops and it goes up at a 10 to 1 ratio so your linear function for that would be f(x)= 10x 10 being the cost per production of flip-flops and x being the number of flip flops. then you would have the a $15 dollar sell rate or which would be a $5 extra rate. so then as you graph what would you get?

Answer 2

The equation that projects the cost of manufacturing intersects the line that reflects the revenue of manufacturing at the equilibrium. This means this quantity at equilibrium is the minimum amount in which the manufacturer has to yield to maximize profit.