Question 1

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A Linear Equation of the form y = mx + b becomes a Linear Function when y = f(x) = mx + b. The linear function is popular in business and economics

because it has many important applications. One such important function to a business is the profit function. In your own words,

A) Explain the mathematical concept of the profit function P(x).

B) Using the real-life application below, for the profit function, determine the following:

A company receives $45 for each unit of output sold. It has a variable cost of $25 per item and a fixed cost of $1600. What is its profit, P(x), if it sells (a)

70 items, (b) 140 items, and (c) 280 items? Hint: C(x) = 1600 + 25x