Case Study 3
Let's revisit Angelita's Rugs from Lab Assignment 1. The cost function was found to be, the revenue function was, and the profit function was. Cost and revenue had a domain of 0,125 and profit had a domain of about 3,81.
Answer the following questions. Remember to show all work and label/interpret your answers.
1. Determine the average rate of change in profit if Angelita sells between 30 and 40 rugs.
2. Determine the average rate of change in profit if Angelita sells between 60 and 70 rugs.
3. Determine the instantaneous rate of change in profit when Angelita sells 25 rugs.
4. What is the marginal cost when 20 rugs are sold?
5. What is the average cost of the first 20 rugs?
6. What is the marginal revenue when 35 rugs are sold?
7. What is the actual change in revenue when the 36th rug is sold?
8. What is the marginal profit when 50 rugs are sold?
9. What is the actual change in profit when the 51st rug is sold?
In business, a shutdown point refers to the level of operations at which a company experiences no benefit for continuing operations - the company is earning just enough revenue to cover its variable costs. The shutdown point occurs when marginal profit becomes negative. What is Angelita's shutdown point? **first half of question is posted under this chegg link... chegg-study.app.link/xG5dsoi9elb **