Math Problem Statement

Answer the questions in the same order that they show up

The manufacturing research department for a company that manufactures and sells notebook computers established the following price-demand and revenue functions: p(x) = 2000 - 60x and R(x) = p(x) * x = (2000 - 60x) * x. Find break-even points, maximum profit, and analyze graphs.

Solution

I will analyze the image content and solve the questions based on the provided data.

Let's begin with the first part:


1. Part a: Price-Demand Function

The price-demand function is given as:

p(x)=200060xp(x) = 2000 - 60x

where p(x)p(x) is the price per computer in dollars when xx thousand computers are sold.

Revenue Function

The revenue function is given by:

R(x)=p(x)x=(200060x)xR(x) = p(x) \cdot x = (2000 - 60x) \cdot x Expanding the function:

R(x)=2000x60x2R(x) = 2000x - 60x^2

This is the revenue function in thousands of dollars.


a) Graph the Revenue Function

To plot the revenue function, R(x)=2000x60x2R(x) = 2000x - 60x^2, you would plot values of R(x)R(x) for different xx (number of computers in thousands).

Let's first compute some key points for the graph:

  • For x=0x = 0: R(0)=2000(0)60(0)2=0R(0) = 2000(0) - 60(0)^2 = 0
  • For x=10x = 10: R(10)=2000(10)60(10)2=200006000=14000R(10) = 2000(10) - 60(10)^2 = 20000 - 6000 = 14000
  • For x=20x = 20: R(20)=2000(20)60(20)2=4000024000=16000R(20) = 2000(20) - 60(20)^2 = 40000 - 24000 = 16000
  • For x=30x = 30: R(30)=2000(30)60(30)2=6000054000=6000R(30) = 2000(30) - 60(30)^2 = 60000 - 54000 = 6000

These values will help plot a parabolic curve on the graph, with the maximum revenue between x=10x = 10 and x=30x = 30. The graph will rise until it hits a maximum, then decrease.


2. Part b: Cost Function

The cost function is given by: C(x)=4000+50xC(x) = 4000 + 50x This is a linear function, where the fixed cost is 4000 and the variable cost increases by 50 for each additional xx (in thousands of computers).

Let's calculate some values:

  • For x=0x = 0: C(0)=4000C(0) = 4000
  • For x=10x = 10: C(10)=4000+50(10)=4500C(10) = 4000 + 50(10) = 4500
  • For x=20x = 20: C(20)=4000+50(20)=5000C(20) = 4000 + 50(20) = 5000
  • For x=30x = 30: C(30)=4000+50(30)=5500C(30) = 4000 + 50(30) = 5500

These values can be used to plot the cost function.


c) Find the Break-Even Points

The break-even points occur when revenue equals cost, i.e., R(x)=C(x)R(x) = C(x).

Set the functions equal to each other: 2000x60x2=4000+50x2000x - 60x^2 = 4000 + 50x Rearranging the terms: 60x2+2000x50x4000=0-60x^2 + 2000x - 50x - 4000 = 0 60x2+1950x4000=0-60x^2 + 1950x - 4000 = 0

We can solve this quadratic equation to find the break-even points. I will calculate the roots next.

Let me calculate the break-even points.

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Math Problem Analysis

Mathematical Concepts

Algebra
Quadratic Functions
Linear Functions
Revenue and Cost Analysis

Formulas

Price-Demand Function: p(x) = 2000 - 60x
Revenue Function: R(x) = p(x) * x = 2000x - 60x^2
Cost Function: C(x) = 4000 + 50x
Profit Function: P(x) = R(x) - C(x)

Theorems

Quadratic Formula for solving break-even points
Profit maximization by finding vertex of parabola

Suitable Grade Level

Grades 11-12 or early college