Profit function-break even quantities and marginal revenue


The revenue and cost functions for producing as well as selling quantity x for the certain production facility are given below.

R(x) = 12x - x2

C(x) = 18 + 3x

a) Find out the profit function P(x).

b) Employ Excel to graph the functions R(x), C(x) and P(x) for interval 0≤ x ≤ 10. Copy and paste the graph below. Note: Employ Scatter plot with smooth lines and markers.

c) Compute the break-even quantities.

d) Find out the marginal revenue R'(x).

e) Find out the marginal cost C'(x)

f) At what quantity is profit maximized?

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Basic Statistics: Profit function-break even quantities and marginal revenue
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