Question

suppose you create a graph of the cost function C=20n+500 of a new bookstore, and you also graph the revenue function, r=25n, where n is the number of books sold. On your graph, would the point n=50 be in the loss section, the profit section, or the break-even section?

Answer 1

break-even section

Explanation:

Answer 2

With 50 books sold, the point is in the loss section.

For
`n=50`, revenues are 1250 and costs are 1500, which creates a deficit of -250.

Explanation:

So, we know that the cost function and revenue function are:

Cost function:
`C=20n+500`

Revenue function:
`r=25n`

Now, for
`n=50`, the cost and revenue would be:

`C=20(50)+500=1000+500=1500`

`r=25(50)=1250`

So, with 50 books sold, there is a deficit of -$250. Therefore, the point is in the loss section.