College Algebra (Abridged)

1.15 Chapter One Review Answers Question 1: A Solution: In this case, we have to first determine the mathematical equation from the wording of the question. The “break even point” for any firm is when total costs of the company equal the total revenues. Costs may be fixed (they do not change with the change of output) or variable (they change as per the change in output). • The cost function of the firm is: ( ) = 2400 + 4.5 , where = number of leather belts produced. • The revenue function of the firm is: ( ) = 7.5 • At the breakeven point, ( ) = ( ) 2400 + 4.5 = 7.5 Solve the equation by subtracting 4.5 2400 = 3 Divide both sides by 3 = 800 The graphical representation for the equation, = 3 – 2400 is given as follows:

Question 2: C

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