Question

In the profit function p(x,y), if x represents the quantity of TVs produced and y represents the quantity of radios produced, what does p(x,y) measure?

a) Total revenue from TVs
b) Total revenue from radios
c) Total profit from both TVs and radios
d) Total cost of production

Answer 1

The profit function p(x,y) measures the total revenue from both TVs and radios produced.

Step-by-step explanation:

Total revenue is the income a firm generates from selling its products. In the given profit function p(x,y), where x represents the quantity of TVs produced and y represents the quantity of radios produced, the function p(x,y) measures total revenue from both TVs and radios. This is because the profit function takes into account the quantity of both TVs and radios produced and calculates the total revenue generated from selling them.