Math Problem Statement
The task involves completing a graph that illustrates the relationships between revenue \(E(x)\), profit \(G(x)\), and costs \(K(x)\), where:
1. \(E(x)\) is the revenue as a function of the quantity \(x\) sold.
2. \(G(x)\) is the profit, defined as \(G(x) = E(x) - K(x)\), where \(K(x)\) is the cost function.
3. \(K(x)\) is assumed to be linear, as stated in the problem.
Solution
The task involves completing a graph that illustrates the relationships between revenue , profit , and costs , where:
- is the revenue as a function of the quantity sold.
- is the profit, defined as , where is the cost function.
- is assumed to be linear, as stated in the problem.
From the provided graph:
- appears as a concave curve (likely quadratic), indicating that revenue increases at a decreasing rate as grows.
- is shown as a curve below , with initially positive but eventually decreasing and crossing zero.
- The task is to draw the linear cost function , which satisfies .
Key Observations:
- should be a straight line intersecting at the point where (the break-even points).
- Since is linear, it has a constant slope.
Would you like me to provide a step-by-step method to calculate or sketch , or clarify any specific part of the graph or functions? Let me know how I can assist further!
Relative Questions:
- How is the cost function typically calculated if its linearity is assumed?
- Why does cross the -axis, and what does this represent in terms of profit?
- What is the significance of being a concave function in practical scenarios?
- How can we mathematically determine the slope of based on and ?
- What economic assumptions underlie the idea that all produced quantities are sold?
Tip:
Always check the intersection points between and , as they provide critical insights into profitability and cost-effectiveness.
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Math Problem Analysis
Mathematical Concepts
Linear Functions
Quadratic Functions
Profit Analysis
Formulas
G(x) = E(x) - K(x)
Theorems
-
Suitable Grade Level
Grades 10-12