Question

An automobile retailer calculates that its loss on the sale of Type M cars is given by L(50) = 8,000 and L'(50) = −500, where L(x) represents the loss on the sale of x Type M cars. What do these values tell you about losses?

Answer 1

The loss on the sale of 50 type M cars is $8000, and the loss is decreasing at the rate of $500 per 50 type M car sold.

Explanation:

Given

`L(50) = 8000`

`L'(50) = -500`

Required

Interpret

From the question, we understand that:

`x \to` Number of cars

`L(x) \to` Profit on x cars

Using the above as a point of reference,

`L'(x) \to` Rate of loss per x cars

So, the interpretations are:

`L(50) = 8000`

A loss of 8000 on 50 cars

`L'(50) = -500`

The loss rate is a reduction of 500 per 50 car