You are selling ice cream bars from a cart. You sell them for $0.75 per bar. Your cost for the ice cream is $0.30 per bar, and your cost for the rental of the cart is $50. a) Write a formula for your profit from selling ice cream bars. Be sure to identify all your variables and the units used. b) What is the slope of the profit function? What is its meaning in terms of selling ice cream bars? c) What is the vertical intercept of the profit function? What is its meaning in terms of selling ice cream bars? d) What is the horizontal intercept of the profit function? What is its meaning in terms of selling ice cream bars?

You are selling ice cream bars from a cart. You sell them for $0.75 per bar. Your cost for the ice cream is $0.30 per bar, and your cost for the rental of the cart is $50. a) Write a formula for your profit from selling ice cream bars. Be sure to identify all your variables and the units used. b) What is the slope of the profit function? What is its meaning in terms of selling ice cream bars? c) What is the vertical intercept of the profit function? What is its meaning in terms of selling ice cream bars? d) What is the horizontal intercept of the profit function? What is its meaning in terms of selling ice cream bars?

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter29: Resource Markets

Section: Chapter Questions

Problem 3E

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