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A Business Calculas cross-examine?
A tire maker can produce x tires at a fixed cost of $29 and a inconsistent cost of 0.02 dollars per tire...?A tire maker can produce x tires at a fixed cost of $29 and a unreliable cost of 0.02 dollars per tire. The company can sell the tires at $54 dollars respectively. Can you show how you arrive at your answer please? It would really help me work out. Thanks.
1. What is the profit function? P(x)= R(x) -C(x)
2. What is the marginal cost?
3. What is the break even point? C(x) = R(x)
Answers: x - represent the number of tires made and sold
You have to assume that adjectives tires made are sold.
Cost C(x) = $ 29.00 + $ 0.02 x
Revenue R(x) = $ 54.00 x
Thus Profit = $ 54.00 x - [ $ 29.00 + $ 0.02 x ]
Marginal Cost = $ 0.02
The breakeven point is when
$ 29.00 + $ 0.02 x = $ 54.00 x
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