Task
Functions can be used to model economic situations that involve revenue and expenses. Being able to
determine the zeros of these functions can tell you a lot about the economic situation.
Directions for Students
The total costs, in dollars, of producing a certain product are represented by
Cx x ( ) 3,840 6(1,760 80 ) where x is the price, in dollars, of the product. The total revenue, in dollars,
from the sale of the product is represented by Rx x x ( ) (1,760 80 ) , where x is the price, in dollars, of
the product. The total profit, in dollars, can be determined by the expression R( ) ( ). x Cx
Based on the profit expression:
for what price intervals for the product will there be negative profit (losing money to produce), no
profit (break-even price), and positive profits?
for what price will the profits be the greatest, and what will those profits be at that price?
Provide evidence, including a graph if necessary, to support your answer.