Answer:
- Cost is Increasing at a rate of 20,000 per week
- Revenue is decreasing at a rate of 100,000 per week
- Profit is decreasing at a rate of 120,000 per week
Step-by-step explanation:
The cost, revenue, and profit equations for a company manufacturing calculators are given below:
- Cost, C=90000+40x
- Revenue,
- Profit = R - C
When Production output x=4000
<u />
<u>Change in Cost</u>
Cost, C=90000+40x
<u>Change in Revenue</u>
<u>Change in Profit</u>
Therefore, when production output is 4000 and increasing at a rate of 500 calculators per week,
- Cost is Increasing at a rate of 20,000 per week
- Revenue is decreasing at a rate of 100,000 per week
- Profit is decreasing at a rate of 120,000 per week