Given the Cost Function, C(x), and the Revenue Function, R(x)

question 99

Multiple Choice

Given the cost function, C(x) , and the revenue function, R(x) , find the number of units x that must be sold to break even.
-A store sells tents, sleeping bags, and camp stools. A customer buys a tent, 4 sleeping bags, and 3 camp stools for $220. The price of the tent is 7 times the cost of a camp stool. The cost of a sleeping bag is $20 more than the
Cost of a camp stool. Find the cost of each item.

• A) $77 for a tent; $30 for a sleeping bag; $11 for a camp stool
• B) $70 for a tent; $35 for a sleeping bag; $15 for a camp stool
• C) $70 for a tent; $30 for a sleeping bag; $10 for a camp stool
• D) $70 for a tent; $30 for a sleeping bag; $11 for a camp stool

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Definitions:

Consumer Surplus

The distinction between the total cost consumers are willing to offer for a good or service and the amount they eventually pay.

Surplus II

An excess amount of a product or resource compared to the demand, often resulting in lower prices.

Surplus III

An excess of production or supply over demand, often referring to goods in a market that exceed buyer requirements.

Consumer Surplus

The distinction between the price consumers are inclined to pay for a product or service and what they ultimately pay.