207k views
5 votes
Select all the correct answers.

Maria operates a taco truck in her neighborhood. She has created a graph based on her business performance in the previous year. The price she
currently sells tacos for is $2.30. Which two statements correctly interpret this graph?
Revenue and Cost Functions
00000
Dollars
+20,000
+10,000
revenue
profits
$2.50
costs
$5.00
Price
$7.50
Maria's business is incurring losses.
Maria's costs are rising over time.
Maria is running a profitable business.
Maria's total revenue exceeds her total profit.
Maria's total profit exceeds her total revenue.
$10.00

User MEmerson
by
8.2k points

1 Answer

4 votes

The two statements that correctly interpret this graph are:

C. Maria is running a profitable business.

D. Maria's total revenue exceeds her total profit.

In Mathematics, revenue is an amount of money that is generated by a firm, while using each of the units of labor for the production of its products or services.

Profit is a measure of the amount of money generated when the cost price is deducted from the selling price (revenue) of a good or service, which is usually provided by producers;

Profit made = Revenue earned - Cost of production

By critically observing the graph shown below, we can logically deduce the following true statements;

Maria is running a profitable business because the profit curve is higher than the cost line.

Maria's profits increase until the price of the tacos reaches $22 because the profit curve has a maximum at $22.

Maria's total revenue exceeds her total profit.

There are more prices of tacos with positive revenues than positive profits.

Complete Question;

Select all the correct answers.

Maria operates a taco truck in her neighborhood. She has created a graph based on her business performance in the previous year. The price she currently sells tacos for is $2.30. Which two statements correctly interpret this graph?

Maria's business is incurring losses.

Maria's costs are rising over time.

Maria is running a profitable business.

Maria's total revenue exceeds her total profit.

Maria's total profit exceeds her total revenue.

Select all the correct answers. Maria operates a taco truck in her neighborhood. She-example-1
User Velimir
by
7.1k points