List the intercepts of the equation .
The x-intercepts are , and the y-intercept is .
The given equation is:
Substitute in the given equation to find the x-intercepts.
Substitute in the given equation to find the y-intercept.
The x-intercepts are and the y-intercept is .
The monthly revenue R achieved by selling
x wristwatches is figured to be The monthly cost C of selling x wristwatches is
(a) How many wristwatches must the firm sell to maximize revenue? What is the maximum revenue?
(b) Profit is given as P(x) = R(x) - C(x). What is the profit function?
(c) How many wristwatches must the firm sell to maximize
profit? What is the maximum profit?
(d) Provide a reasonable explanation as to why the answers found in parts (a) and (c) differ. Explain why a quadratic function is a reasonable model for revenue.
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