Question

Suppose that the revenue y from selling x units of a certain commodity is given by the formula y equals 4 x. ​(Revenue is the amount of money received from the sale of the​ commodity.) The line y equals 4 x intersects the line of​ cost, y equals 2 x plus 4000​, at the point ​(2000​,8000​). What interpretation can be given to the value of the​ x-coordinate of the point of​ intersection?

Answer 1

Answer:

The x-coordinate of the intersection point represents the number of units for which the profit is 0.

Explanation:

The given revenues function is

$y=4x$

The cost function is

$y=2x+4000$

It is given that graph of both function intersect each other at (2000,8000).

Intersection point of cost and revenues function represents that the total cost and total revenue are equal.

Profit = Total revenue - Total cost

Profit = TR - TC

Profit = TR - TR                      (TR=TC)

Profit = 0

The x-coordinate of the intersection point represents the number of units for which the profit is 0.

x-coordinate of the intersection point = 2000

The profit is 0 if the number of units is 2000.