Question

A firm produces an item whose production cost functions is c(x)=200+60x, where x is the number of items produced. If the entire stock is sold at a price of each item which is birr 800, then determine the revenue function.

Answer 1

The revenue function for a firm with the production cost function c(x) = 200 + 60x and a selling price of 800 birr per item is R(x) = 800x.

Step-by-step explanation:

The student is asking for help in determining the revenue function for a firm that produces items with a given production cost function, and sells the items at a set price. The given production cost function is c(x) = 200 + 60x, where x is the number of items produced. The selling price per item is 800 birr. To find the revenue function, which represents how much money the firm brings in from selling its products, we use the formula Revenue = Price × Quantity. Thus, the firm's revenue function will be R(x) = 800x, since the firm sells each item for 800 birr.