4. (5pts) The profit function is defined to be the revenue minus the cost at the production level
Hint: use the domain found in Problem 1.
Domain
Thus, the profit function
Step 1 :First, we need to find the profit function
Step 2 :Given that
Step 3 :So,
Step 4 :Simplify the equation to get
Step 5 :Next, we need to sketch the graph of this function. We can do this by finding the roots of the equation, the vertex, and the y-intercept.
Step 6 :The roots of the equation are the values of
Step 7 :However, this equation is a quadratic equation and it's a bit complex to solve. So, we can use the quadratic formula
Step 8 :Substitute these values into the quadratic formula to get
Step 9 :Solving this equation gives us two roots, but we only consider the positive root because the quantity produced cannot be negative.
Step 10 :The vertex of the parabola is given by the formula
Step 11 :The y-intercept is the value of
Step 12 :With these points, we can sketch the graph of the function
Step 13 :Finally, we check whether our results meet the requirements of the problem. The graph should be a downward-opening parabola with the vertex at the point calculated above, and it should intersect the x-axis at the roots calculated above. The y-intercept should be at
Step 14 :Thus, the profit function