5
QuizMultiple Choice

Max Profit — Quiz

Question 5 • Financial Math

EcoAuto is a company that produces eco-friendly electric cars. The company has the following financial functions: - Revenue function: R⁡(q)=300⁢q−3⁢q^2 where: q is the number of electric cars sold. - Expense function: E⁡(q)=4,000+50⁢q where: q is the number of electric cars produced. What is the profit equation P⁡(q) for EcoAuto in terms of the quantity q of cars produced and sold?

Answer
A
P⁡(q)=3⁢q2−250⁢q+4,000
B
P⁡(q)=−3⁢q2+250⁢q−4,000
C
P⁡(q)=3⁢q2+250⁢q−4,000
D
P⁡(q)=−3⁢q2+300⁢q−4,000

Explanation

Profit equals revenue minus expenses: P(q) = R(q) − E(q). Substituting the given functions gives P(q) = (300q − 3q²) − (4,000 + 50q) = −3q² + 250q − 4,000. This matches choice A.

AI-written and checked against the verified answer.

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