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    Business Application

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    Bảo Châu Vương

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    Business Application

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    Bảo Châu Vương
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    14 views1 page

    Business Application

    Uploaded by

    Bảo Châu Vương

    Copyright:

    © All Rights Reserved
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    of 1

    Exercise Set 2.

    6 285

    EXERCISE SET
    2.6
    APPLICATIONS Currently, Pierce sells 70 lawn chairs daily.
    a) What is the current daily revenue?
    Business and Economics b) How much would revenue increase if 73 lawn chairs
    1. Marginal revenue, cost, and profit. Let R1x2, C1x2, and were sold each day?
    P1x2 be, respectively, the revenue, cost, and profit, in c) What is the marginal revenue when 70 lawn chairs
    dollars, from the production and sale of x items. If are sold daily?
    d) Use the answer from part (c) to estimate R1712,
    R1x2 = 5x and C1x2 = 0.001x 2 + 1.2x + 60,
    R1722, and R1732.
    find each of the following.
    6. Marginal profit. For Sunshine Motors, the weekly profit,
    a) P1x2
    in dollars, of selling x cars is
    b) R11002, C11002, and P11002
    c) R¿1x2, C¿1x2, and P¿1x2 P1x2 = - 0.006x 3 - 0.2x 2 + 900x - 1200,
    d) R¿11002, C¿11002, and P¿11002 and currently 60 cars are sold weekly.
    e) Describe in words the meaning of each quantity in
    a) What is the current weekly profit?
    parts (b) and (d).
    b) How much profit would be lost if the dealership were
    2. Marginal revenue, cost, and profit. Let R1x2, C1x2, able to sell only 59 cars weekly?
    and P1x2 be, respectively, the revenue, cost, and profit, c) What is the marginal profit when x = 60?
    in dollars, from the production and sale of x items. If d) Use marginal profit to estimate the weekly profit if
    sales increase to 61 cars weekly.
    R1x2 = 50x - 0.5x 2 and C1x2 = 4x + 10,
    find each of the following. 7. Marginal profit. Crawford Computing finds that its
    weekly profit, in dollars, from the production and sale of
    a) P1x2
    x laptop computers is
    b) R1202, C1202, and P1202
    c) R¿1x2, C¿1x2, and P¿1x2 P1x2 = - 0.004x 3 - 0.3x 2 + 600x - 800.
    d) R¿1202, C¿1202, and P¿1202 Currently Crawford builds and sells 9 laptops weekly.
    3. Marginal cost. Suppose that the monthly cost, in dollars, a) What is the current weekly profit?
    of producing x chairs is b) How much profit would be lost if production and
    sales dropped to 8 laptops weekly?
    C1x2 = 0.001x 3 + 0.07x 2 + 19x + 700,
    c) What is the marginal profit when x = 9?
    and currently 25 chairs are produced monthly. d) Use the answers from parts 1a2–1c2 to estimate the
    a) What is the current monthly cost? profit resulting from the production and sale of
    b) What would be the additional cost of increasing 10 laptops weekly.
    production to 26 chairs monthly?
    8. Marginal revenue. Solano Carriers finds that its
    c) What is the marginal cost when x = 25?
    monthly revenue, in dollars, from the sale of x carry-on
    d) Use marginal cost to estimate the difference in cost
    suitcases is
    between producing 25 and 27 chairs per month.
    e) Use the answer from part (d) to predict C(27). R1x2 = 0.007x 3 - 0.5x 2 + 150x.
    Currently Solano is selling 26 carry-on suitcases monthly.
    4. Marginal cost. Suppose that the daily cost, in dollars,
    of producing x radios is a) What is the current monthly revenue?
    b) How much would revenue increase if sales increased
    C1x2 = 0.002x 3 + 0.1x 2 + 42x + 300, from 26 to 28 suitcases?
    and currently 40 radios are produced daily. c) What is the marginal revenue when 26 suitcases are
    a) What is the current daily cost? sold?
    b) What would be the additional daily cost of increasing d) Use the answers from parts (a)–(c) to estimate the
    production to 41 radios daily? revenue resulting from selling 27 suitcases per month.
    c) What is the marginal cost when x = 40? 9. Sales. Let N1x2 be the number of computers sold
    d) Use marginal cost to estimate the daily cost of annually when the price is x dollars per computer.
    increasing production to 42 radios daily. Explain in words what occurs if N110002 = 500,000
    5. Marginal revenue. Pierce Manufacturing determines that and N¿110002 = - 100.
    the daily revenue, in dollars, from the sale of x lawn chairs is 10. Sales. Estimate the number of computers sold in Exer-
    R1x2 = 0.005x 3 + 0.01x 2 + 0.5x. cise 9 if the price is raised to $1025.

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