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 E(x)E(x), profit G(x)G(x), and costs K(x)K(x), where:

  1. E(x)E(x) is the revenue as a function of the quantity xx sold.
  2. G(x)G(x) is the profit, defined as G(x)=E(x)K(x)G(x) = E(x) - K(x), where K(x)K(x) is the cost function.
  3. K(x)K(x) is assumed to be linear, as stated in the problem.

From the provided graph:

  • E(x)E(x) appears as a concave curve (likely quadratic), indicating that revenue increases at a decreasing rate as xx grows.
  • G(x)G(x) is shown as a curve below E(x)E(x), with G(x)G(x) initially positive but eventually decreasing and crossing zero.
  • The task is to draw the linear cost function K(x)K(x), which satisfies G(x)=E(x)K(x)G(x) = E(x) - K(x).

Key Observations:

  1. K(x)K(x) should be a straight line intersecting E(x)E(x) at the point where G(x)=0G(x) = 0 (the break-even points).
  2. Since K(x)K(x) is linear, it has a constant slope.

Would you like me to provide a step-by-step method to calculate or sketch K(x)K(x), or clarify any specific part of the graph or functions? Let me know how I can assist further!


Relative Questions:

  1. How is the cost function K(x)K(x) typically calculated if its linearity is assumed?
  2. Why does G(x)G(x) cross the xx-axis, and what does this represent in terms of profit?
  3. What is the significance of E(x)E(x) being a concave function in practical scenarios?
  4. How can we mathematically determine the slope of K(x)K(x) based on G(x)G(x) and E(x)E(x)?
  5. What economic assumptions underlie the idea that all produced quantities are sold?

Tip:

Always check the intersection points between E(x)E(x) and K(x)K(x), 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

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Suitable Grade Level

Grades 10-12