Read the following questions carefully. Answer each question completely. Show your work. When
asked to interpret, we want to know what the number means in words. Please answer
interpretation questions in a complete sentence. This problem set is worth 1 point. If you do not have
all parts correct, you can adjust and add to your work to earn your point.
LT 2: I can develop cost and revenue functions and can explain their role in profit and break-even
analysis, and I can use supply and demand functions and explain their role in market equilibrium
analysis
1. Your college newspaper, The Collegiate Investigator, has fixed production costs of $70.00 per
edition and marginal printing and distribution costs of $0.40 per copy. The newspaper sells for
$0.50 per copy. Write down the associated cost, revenue, and profit functions. How many copies
should be sold to break even?
a. Cost function: 40x+70
b. Revenue function: 10x-70
c. Profit function:
d. Number of copies to break even: