Suppose a Radio Manufacturer Has the Total Cost Function

question 68

Multiple Choice

Suppose a radio manufacturer has the total cost function and the total revenue function , where x represents the number of radios produced and sold. Write down the profit function and then use this function to determine how many radios must be sold to avoid losing money. Round your answer to the nearest whole number. ​

• A)700
• B)38
• C)40
• D)165
• E)1,935

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Definitions:

Physical Sciences

Branches of science that study inanimate natural objects, including astronomy, chemistry, physics, and earth sciences.

Other-Things-Constant Assumption

The assumption, when focusing on the relation among key economic variables, that other variables remain unchanged; in Latin, ceteris paribus.

Rational Self-Interest

Each individual tries to maximize the expected benefit achieved with a given cost or to minimize the expected cost of achieving a given benefit.

Economic Actors

Individuals, companies, and organizations involved in the production, distribution, and consumption of goods and services.