The figure shows the graphs of the cost and revenue functions for a company that manufactures and sells small radios. More than
how many radios must be produced and sold for the company to have a profit?
The company must produce and sell more than ? radios to have a profit.
The company must produce and sell more than ? radios to have a profit.
1 answer:
ANSWER
The company must produce and sell more than 700 radios to have a profit.
EXPLANATION
The revenue function is
and the cost function is
The company will break even when total revenue is equal to the total cost.
This implies that,
We group similar terms to get,
This simplifies to,
Divide both sides by 8 to get,
The company breaks even by producing and selling 700 radios.
The company must produce and sell more than 700 radios to have a profit.
The company must produce and sell more than 700 radios to have a profit.
EXPLANATION
The revenue function is
and the cost function is
The company will break even when total revenue is equal to the total cost.
This implies that,
We group similar terms to get,
This simplifies to,
Divide both sides by 8 to get,
The company breaks even by producing and selling 700 radios.
The company must produce and sell more than 700 radios to have a profit.
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We have been given the sequence 2,3,5,9,17.
We can write the terms of this sequence as
From the above term we can see that for the first term we take exponent 0 on 2 and then add 1 .
For second term we take exponent 1 on 2 and then add 1 .
For third term we take exponent 2 on 2 and then add 1 .
Using this fact for the next term of the sequence i.e. 6th term, we can take exponent 5 on 2 and then add 1 .
Therefore, next term of the sequence is given by
Therefore, the next term is 33.
Using the above facts, the pattern is given by
The reasonable estimate of the current customer price index is 195. The option B is the correct option.
<h3>Customer price index</h3>Customer price index is the price index which measures the weight average of price of basket of customers goods or services.
It can be given as,
Here is the cost of market basket in current period and
is the cost of market basket in the base period.
Cost of market basket in current period is
Cost of market basket in 1983 is,
Substitute all the values in the formula
Thus the value of current CPI is 168.5 which is near about the 170.
Hence, the reasonable estimate of the current customer price index is 195. The option B is the correct option.
Learn more about the customer price index here;