Economic Definitions Profit = Revenue – Cost P(x) = R(x) – C(x) Assume the cost of producing x radios is C(x) =.4x 2 +7x + 95 dollars. A. Find the cost of producing 20 radios. B. Determine the cost of producing the 20 th radio. C. Determine the cost of producing 0 radios.

It costs a manufacturer C(x) =.4x 2 +7x + 95 dollars to produce x radios. Each radio can be sold for $40. a. Determine the profit function. b. What is the profit on the manufacture and sale of 25 radios? c. What is the profit on the 25 th radio?

Break Even Point occurs when the profit is zero or when revenue equals costs. Break even: P(x) = 0 or R(x) = C(x) A manufacturer of plastic containers for compact disks has a profit function P(x) =.3x – 150, where x is the number of CD containers produced and sold. How many containers must be made and sold to break even.

The cost and revenue function for a business are given by C(x)=20x and R(x)=50x -.1x 2. For what value of x will the business break even?

The relationship between price and consumer demand is given by a demand equation. This equation is usually some type of inverse variation. As the price increases, the demand decreases. The relationship between the price per unit to a supplier and the number of items supplied is given by a supply function. This equation is usually some type of direct variation. As price increases, supply increases.

Revenue is the money that is earned by selling x items of a product. Revenue is the product of the number of items sold and the price of each item. R(x) = x ∙ p x = number of items sold p = price per item Use the demand function p=80-.2x to construct the revenue function and then find the total revenue from the sale of 90 units.

The total cost function is the product of the number of items produced and the cost per item plus the fixed costs. C(x) = x∙ p + (fixed costs) x=number of items p=cost per item Use the supply function p=.02x+3 to construct the cost function, then find the total cost of supplying 85 units. Assume there are no fixed costs.

Equilibrium Point occurs when the supply of a product equals the demand of the product. (Supply is the amount that producers are willing to produce and sell. Demand is the amount that consumers are willing to buy.)

Suppose the demand function for a product is p=17-.2x and the supply equation is p=.4x+8. a. Find the equilibrium quantity. b. Find the equilibrium price. c. Find the equilibrium point.

assignment Page 50 Problems 2-14 even, 18,20,24,28,30,32 Page 52 Problems 2,4