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Vaughn Dunn

22/04/2021 · Elementary School

Market research for a certain ice cream company indicates that if the price per cup of ice cream is \(P 50.00\) , the demand will be \(1200\) cups, whereas if the price is increased to \(P 60.00\) , the demand will be \(1100\) cups. 

(a) If \(p\) denotes the price per cup (in pesos) and \(x\) denotes the demand for ice cream (in cups), express \(p\) as a linear function of \(x\) . 

(b) Determine the revenue function and its domain. 

(c) Find the marginal revenue at a production level of \(200\) cups of ice cream. Interpret. 

Now, suppose it is known that the total cost of production of \(x\) cups of ice cream is given by ( \(x ) = 3 x + 25,500\) . 

(d) Find the value(s) of \(x\) at the break-even points. 

(e) Use marginal analysis to approximate the profit from the sale of the \(500 ^ { th} \) cup of ice cream. Compare this value with the exact profit from the sale of the \(500 ^ { th} \) cup. 

Answer
expertExpert-Verified Answer

Bob Carlson
Qualified Tutor
4.0 (37votes)

(a)x=620-10p    p=62-0.1x

(b)\(R( x) = 62x- 0.1x^ 2\)  \(( 0,9610] \)

(c)\(26100\)

 

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