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Exercise 1.3 · Q18

Q.The owner of a small restaurant can prepare a particular meal at a cost of Rupees 100. He estimates that if the menu price of the meal is xx rupees, then the number of customers who will order that meal at that price in an evening is given by the function D(x)=200−xD(x)=200-x. Express his day revenue, total cost and profit on this meal as functions of xx.

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Step 1 (Revenue). Number of customers at price xx is D(x)=200−xD(x)=200-x. Revenue == price ×\times quantity =x⋅D(x)=x(200−x)=200x−x2=x\cdot D(x)=x(200-x)=200x-x^2.

Step 2 (Total cost). Cost per meal is Rupees 100, so total cost =100⋅D(x)=100(200−x)=20,000−100x=100\cdot D(x)=100(200-x)=20{,}000-100x. …

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