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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?

2 Answers

3 votes

Answer:

break-even section

Explanation:

User Braulio
by
8.0k points
5 votes

Answer:

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.

User Sauda
by
8.2k points
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