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MANUFACTURING PROFIT Rafael estimates that it costs $14 to produce each unit of a particular comm...

MANUFACTURING PROFIT Rafael estimates that it costs $14 to produce each unit of a particular commodity that sells for $23 per unit. There is also a fixed cost of $1,200.

  1. Express the cost C(x), the revenue R(x), and the profit P(x) as functions of the number of units x that are produced and sold. I have this answer** R (x) = 23x  C (x) = 14x + 1,200 and P (x) = 9x - 1200 there are different answers already posted but to me they look incorrect specially for the Revenue***I am confident this one is correct. Question:
  2. How much profit is generated when x = 100 units are produced? I have : -300 a loss. (please confirm)
  3. What is the smallest number of units that must be produced for Rafael’s company to be profitable?
  4. What is the average profit function AP(x)? What is the average profit when 2,500 units are produced?

Thank you in advance.

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Answer #1

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