Question

A company's cost of producing q liters of a chemical is C(q) dollars: this quantity can be sold for R(q) dollars. Suppose C(2000)=6020 and R(2000)=7930

What is the profit at a production level of 2000?

Answer 1

The profit at a production level of 2000 liters is calculated by subtracting the cost of production ($6020) from the total revenue ($7930), resulting in a profit of $1910.

Step-by-step explanation:

The profit at a production level of 2000 liters for the company can be calculated by subtracting the total cost from the total revenue at this production level. We have C(2000) which represents the total cost of producing 2000 liters and is given as $6020. Similarly, we have R(2000) which is the total revenue from selling 2000 liters, and it is given as $7930.

Total cost (C) and total revenue (R) are used to calculate profit (P). The profit equation is expressed as P(q) = R(q) - C(q), where q is the quantity of the product. In this case, for 2000 liters, the profit is calculated as follows:

Profit = R(2000) - C(2000) = $7930 - $6020 = $1910.

Thus, the profit at a production level of 2000 liters is $1910.