The total cost and total revenue function of a commodity are given by C(x) =x+40 and $R(x) =ax-bx^2$.Break-even points are 5, 40 then a and b are :
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → $a=10, b=0.2$
The Break events point occurs,
$C(x)=R(x)$
when $x=5$,
$5+40=a(5)-b(5)^2$
$45=5a-25b$ ...(1)
when $x=40$,
$40+40=a(40)-b(40)^2$
$40a-1600b=80$ ...(2)
from (1) and (2) we get,
$b=\frac{1}{5},a=10$