Question

I have 2 problems that have me stumped, please help!!!

True or False. If R and C are linear revenue and cost functions respectively, and (x0,p0) is the breakeven point, then P(x)>P(x0) if x>x0, where P is the profit function.

Answer 1

By definition, the profit function P(x) is defined as
P(x)=R(x)-C(x),
i.e. profit is positive when revenue exceeds cost.
When they are equal, it is the "breakeven"point, (x0,p0), where P(x0)=0.
Do you have enough to make your choice?

Answer 2

I think so...lol thank you! Unless I'm mistaken and reading your information incorrectly, the answer is "True"

Answer 3

Yes, I would give a true as well.
If it is not true,then there will never be a profit, and therefore p0 does not exist (no break even point).

Answer 4

Thank you so much for your help!!!

Answer 5

My pleasure! :)