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Combining functions: Revenue, Cost, and Profit

Explore combining revenue, cost, and profit functions to optimize economic outcomes. Analyze graphs and compositions of functions to enhance understanding and application in business scenarios.

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Combining functions: Revenue, Cost, and Profit

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  1. Combining functions: Revenue, Cost, and Profit The revenue, cost, and profit for a product, each in terms of dollars for sales of x units, are given below: Revenue Cost Profit We can refer to the function P as the difference of functions R and C

  2. It can also be seen from the graph that profit is the difference of revenue and cost Revenue Profit revenue - cost profit Cost

  3. Composition of functions: Evaporation rate Expected temperature T(h) for August 24 is a function of hour of day: Evaporation rate E(T) of a small lake is a function of outside temperature: What do you expect the evaporation rate to be at 2:00? Define evaporation rate as a function of hour of day: We can refer to the function P as the composition of functions E and T

  4. Summary of combinations of functions

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