Problem

Profit-loss analysis. Use the revenue and cost functions from Problem 64 in this exe...

Profit-loss analysis. Use the revenue and cost functions from Problem 64 in this exercise:

where x is thousands of computers, and R(x) and C(x) arc in thousands of dollars. Both functions have domain

(A) Form a profit function P, and graph R, C, and P in the same rectangular coordinate system.

(B) Discuss the relationship between the intersection points of the graphs of R and C and the x intercepts of P.

(C) Find the x intercepts of P and the break-even points.

(D) Refer to the graph drawn in part (A). Does the maxi-mum profit appear to occur at the same value of x as the maximum revenue? Arc the maximum profit and the maximum revenue equal? Explain.

(E) Verify your conclusion in part (D) by finding the value of x that produces the maximum profit. Find the maximum profit and compare with Problem 62B.

Reference of Problem 64:

Step-by-Step Solution

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