Cost and Revenue

Question

The graph below shows the cost, C(q), nd revenue, R(q), for a company when they are producing q items. Use the graph to estimate the profit when the company produces 600 items. Show or explain your reasoning.

**The graph shows $ on the left or y-axis and quantity on the x-axis. Do I just go to the amount requested and make an educated guess?

Answer 1

Yes, the profit=revenue-cost and you evaluate revenue and cost from the graph at q=600, then make the subtraction.