Question

A company manufactures and sells x monitors each hour. The hourly price and cost equations are: p=500-0.8x C(x)=4x+6000 a. Given that R(x)=xp, find the revenue function, R(x)

Answer 1

The revenue function is given as

R(x) = 500x - 0.8x²

Explanation:

Given the Price equation

P = 500 - 0.8x

and the Cost equation

C(x) = 4x + 6000

The revenue function is given as

R(x) = xP

But P = 500 - 0.8x

So

R(x) = x(500 - 0.8x)

= 500×x - 0.8x×x

= 500x - 0.8x²

R(x) = 500x - 0.8x²