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QuizMultiple Choice

Linear-Quadratic Systems — Quiz

Question 1 • Financial Math

A boutique owner sells handcrafted scarves. The fixed monthly costs are $⁢500 , and the variable cost per scarf is $⁢10 The boutique's revenue is $⁢0 when 0 scarves are sold and $⁢0 when 100 scarves are sold due to market saturation. The maximum revenue occurs when 50 scarves are sold. Which system of equations represents the linear cost function C⁡(x) and the quadratic revenue function R⁡(x) , where x represents the number of scarves sold?

Answer
A
cap c times x is equal to 500 x plus 10 cap r times x is equal to negative x times open paren x minus 50 close paren
B
cap c times x is equal to 500 x plus 10 cap r times x is equal to negative x times open paren x minus 100 close paren
C
cap c times x is equal to 10 x plus 500 cap r times x is equal to negative x times open paren x minus 100 close paren
D
cap c times x is equal to 10 x plus 500 cap r times x is equal to negative x times open paren x minus 50 close paren

Explanation

The cost function adds the $500 fixed cost to $10 for each scarf, so C(x) = 10x + 500. Revenue is zero at x = 0 and x = 100, so its factors are x and (x − 100); the negative sign makes the parabola open downward, giving R(x) = −x(x − 100). Its vertex is halfway between the zeros, at x = 50, where revenue is maximal. Therefore, choice C is correct.

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