Question

Suppose that for a major production company it costs $150,000 to produce a master
track for a music video and $1.50 to produce each copy. The music videos are sold for
$6.50 each. Write a cost function, a revenue function and the profit function for the
production company.

Answer 1

Answer:

We know that:

Initial cost = $150,000

Cost per music video  = $1.50

Revenue per video = $6.50

If the number of videos is x, the cost function will be:

C(x) = $150,000 + $1.50*x

And the revenue equation will be:

R(x) = $6.50*x

the profit can be calculated as the difference between the revenue and the costs.

P(x) = R(x) - C(x)

P(x) = $6.50*x - $1.50*x - $150,000

P(x) = $5.00*x - $150,000

This equation