How to Calculate Cost, Revenue, and Profit Functions for Drone Production

a) What is the cost function?

b) What is the revenue function?

c) What is the profit function?

Answer:

a) The cost function is C(x) = 77x.
b) The revenue function is R(x) = 77x.
c) The profit function is P(x) = R(x) - C(x).

To find the cost function, we need to determine the relationship between the number of drones produced each week and the total cost incurred. Let's denote the number of drones produced as x.

The current market price for the drones produced is $77 per drone. This means that the cost per drone is also $77.

The total cost can be calculated by multiplying the cost per drone by the number of drones produced:

Cost function: C(x) = 77x

To find the revenue function, we need to determine the relationship between the number of drones sold and the total revenue generated. Since the market price for each drone is $77, the revenue per drone is also $77.

The total revenue can be calculated by multiplying the revenue per drone by the number of drones sold:

Revenue function: R(x) = 77x

To find the profit function, we need to subtract the total cost from the total revenue:

Profit function: P(x) = R(x) - C(x)