Is this true or false?

Question

If R and C are linear revenue and cost functions, respectively, and (x0, p0) is the breakeven point, then P(x) > P(x0) if x > x0, where P is the profit function.

 

If you think the statement is true, then prove it. On the other hand, if you think the statement is false, then give an example that disproves the statement

 

 

Answer 1

It depends on the slopes of the functions R and C.

P(x) = R(x) - C(x)

P(0) = R(x0)-C(x0) =0

If C(x)>R(x) when x>x0, then P(x)<P(x0)