Using the same revenue and cost equations, what is profit when x = 5?

Using the same revenue and cost equations, what is profit when x = 5?

• A. -100
• B. 200
• C. 400
• D. 800

Answer: (C)

Profit comes from subtracting total costs from total revenue. If you have revenue R(x) and cost C(x) using the same equations, the profit at any level is P(x) = R(x) − C(x). For x = 5, you compute P(5) = R(5) − C(5). The result is 400, which means at production level 5, revenue exceeds costs by 400. In other words, the business nets 400 at that level. This follows directly from the idea that profit is the difference between what the company takes in and what it spends, evaluated at x = 5.

Profit comes from subtracting total costs from total revenue. If you have revenue R(x) and cost C(x) using the same equations, the profit at any level is P(x) = R(x) − C(x). For x = 5, you compute P(5) = R(5) − C(5). The result is 400, which means at production level 5, revenue exceeds costs by 400. In other words, the business nets 400 at that level. This follows directly from the idea that profit is the difference between what the company takes in and what it spends, evaluated at x = 5.