for a given demand function p(x) and a given cost function c(x), the profit function is\na) xp(x) - c(x)\nb)…
for a given demand function p(x) and a given cost function c(x), the profit function is\na) xp(x) - c(x)\nb) p(x) - c(x)\nc) xp(x)\nd) c(x) - p(x)
Answer
Explanation:
Step1: Recall revenue formula
Revenue $R(x)$ is price per - unit times number of units. If $p(x)$ is the price per unit and $x$ is the number of units, then $R(x)=xp(x)$.
Step2: Recall profit formula
Profit $P(x)$ is revenue minus cost. Since $R(x) = xp(x)$ and $C(x)$ is the cost function, then $P(x)=R(x)-C(x)=xp(x)-C(x)$.
Answer:
A. $xp(x)-C(x)$