Solve the Problem $C ( x ) = 56,000 + 5000 x$

question 76

Multiple Choice

Solve the problem.
-Steve invests in a circus production. The cost includes an overhead of $56,000, plus production costs of $5000 per performance. A sold-out performance brings in $13,000. Let x represent the number of sold-out
Performances and write the cost function, C and revenue function, R.

• A) \(C ( x ) = 56,000 + 5000 x\)
• \(R ( x ) = 13,000 x\)
• B) \(C ( x ) = 56,000 + 13,000 x\)
• \(R ( x ) = 5000 x\)
• C) \(C ( x ) = 5000 x\)
• \(R ( x ) = 56,000 + 13,000 x\)
• D) \(C ( x ) = 56,000 x + 5000\)
• \(R ( x ) = 13,000 x\)

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Definitions:

Automatic Stabilizers

Economic policies and programs, such as unemployment insurance and taxation, that automatically adjust to help stabilize an economy during fluctuations.

Federal Budget Deficits

Occurs when a government's total expenditures exceed the revenue that it generates, excluding money from borrowings.

Aggregate Demand

The overall requirement for goods and services across an economy, evaluated at one price level and over a specified duration.

Wartime Borrowing

The process of governments taking on debt during times of war to finance military operations and support the economy.