Question

You found that you should stock and sell 50 or 400 cans of beans per week in order to break even. In part (g) you are asked what price(s) you should set to break even. To answer this question, you should plug 50 and 400 into which of the following formulas? Question 3 options: A) R(q) = -0.005q2 + 2.5q B) p(q) = -0.005q + 2.5 C) P(q) = -0.005q2 + 2.25q - 100 D) C(q) = 100 + 0.25q

Answer 1

Answer:

Option C is correct P(q) = -0.005q^{2}  + 2.25q - 100  

Explanation:

Profit P(q) = R(q) – C(q)

Profit = Revenue – Cost

So,  

P(q) = -0.005q^{2}  + 2.5q - 100 – 0.25q

P(q) = -0.005q^{2}  + 2.25q - 100  

In order to find break even, you should plug 50 and 400 into the formula P(q) = -0.005q^{2}  + 2.25q - 100