Question

The cost and revenue functions of a product are given by $C(x) =2x + 80$ and $R(x) = 5x + 20$ respectively, where $x$ is the number of items produced by the manufacture. How many items the manufacturer must sell to realize some profit?

• A. more than $20$
• B. more than or equal to $20$
• C. more than $25$
• D. None of these

Answer 1

Answer: (A)

Profit = Revenue - Cost
Revenue $- cost > 0$ for some profit
$(5x + 20) - (2x + 80) > 0$
$3x - 60 > 0$
$x >20$
Thus, the manufacturer have to sale more than 20 items to earn some profit.