Target Exam

CUET

Subject

-- Applied Mathematics - Section B2

Chapter

Calculus

Question:

The following statements are made on the basis of given graph.

A. OB represents the cost function.
B. MA represents the cost function.
C. Loss occurs at x = 5.
D. Loss occurs at x = 15.
E. Profit occurs at x = 10.

Choose the correct answer from the options given below:

Options:

A and D only

B and C only

B and E only

C only

Correct Answer:

B and C only

Explanation:

The correct answer is Option (3) → B and E only

$\text{OB passes through origin} \Rightarrow \text{Revenue function}$

$\text{MA has positive intercept} \Rightarrow \text{Cost function}$

$\text{Intersection at } x=10 \Rightarrow \text{Break-even}$

$x<10 \Rightarrow \text{Cost > Revenue} \Rightarrow \text{Loss}$

$x>10 \Rightarrow \text{Revenue > Cost} \Rightarrow \text{Profit}$

$\text{Check statements:}$

$\text{A: False}$

$\text{B: True}$

$\text{C: True}$

$\text{D: False}$

$\text{E: No profit exactly at } x=10 \Rightarrow \text{False}$

Correct statements are B and C.