Question

Q#4:

Acme produces widgets. They have fixed monthly expenses of $1200 and also have variable expenses of $12 for each widget. Acme sells each widget for $24.

A) find cost function

B) Revenue function

C) Profit function.

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Answer 1

Answer:

Cost Function: $Cost = 1200 + 12x$

Where x is the number of widget sold.

Revenue Function: $Revenue = 24x$

Profit Function: $Profit = 24x - (1200 + 12x)$