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ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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
Transcribed Image Text:Until recently, hamburgers at the city sports arena cost $2.50 each. The food concessionaire sold an average of 4,500 hamburgers on game night. When the price was raised to $3.00, hamburger sales dropped off to an average
of 4,000 per night. The concessionaire's fixed costs were $7,405.30 per night and the variable cost was $0.54 per hamburger. Answer the following questions (A) through (F).
7,000
7,000
7,000
7,000
Find the break-even points.
The break-even points are
(Simplify your answer. Type an ordered pair. Use a comma to separate answers as needed.)
(E) Find the profit function in terms of x.
P(x) =
(Simplify your answer.)
(F) Evaluate the marginal profit at x = 4920 and interpret the results.
The marginal profit at x = 4920 is $
Interpret the marginal profit.
(Simplify your answer)
O A. At a production level of 4920 hamburgers, the profit is increasing at a rate of $
per hamburger.
O B. At a production level of 4920 hamburgers, the profit is decreasing at a rate of S
per hamburger.

Transcribed Image Text:Until recently, hamburgers at the city sports arena cost $2.50 each. The food concessionaire sold an average of 4,500 hamburgers on game night. WWhen the price was raised to $3.00, hamburger sales dropped off to an averag
of 4,000 per night. The concessionaire's fixed costs were $7,405.30 per night and the variable cost was $0.54 per hamburger. Answer the following questions (A) through (F).
(A) Assume that the relationship between price p and demand x is linear. Express p as a function of x and find the domain of this function.
.....
(Simplify your answer.)
The domain of p is (Type a compound inequality.)
(B) Find the revenue function in terms of x and state its domain.
R(x) = (Simplify your answer.)
The domain of R(x) is (Type a compound inequality.)
(C) Assume that the cost function is linear. Express the cost function in terms of x.
C(x) = (Simplify your answer.)
(D) Graph the cost function and the revenue function in the same coordinate system. Choose the correct graph below.
O A.
B.
OC.
O D.
ARC
12,500-
ARC
12.500-
ARC
12.500-
ARC
12.500-
0-
7,000
0-
0-
7,000
7.000
0-
7.000
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