MATH 140 key terms

Breakeven Point

Where there is zero profit

R(x)=Px

C(x)=mx+f (Fixed Costs)

The answer should be an ordered pair (Q, p)

Equilibrium pt. intersection

(x0,p0)

equilibrium quantity

equilibrium price

steps

• create ordered pairs

• solve for slope using midpoint formula

• set equations equal to each other and solve

• the answer should be x “equilibrium quantity”

• plug back into equation to get. y “equilibrium price”

• construct ordered pair

  
  

row-echelon form

use in calc

• All zero rows at bottom

• The first non-zero number in any row

  • 0 1 0 0

  • 0 0 1 0

  • 0 0 0 1

Cost C(x) =

Total cost= (variable cost) + (fixed costs) = (Production cost per item)(quantity) + (fixed costs)

C(x)=mx+F

if only given points use midpoint form

Revenue R(x)=

R(x)=Px (Profit)

Profit P(x)=

P(x)= R(x)-C(x)

• this can be used to solve for cost or revenue

Scrap value

Lowest possible dollar value an asset can reach

• ALWAYS assume scrap value is 0 unless said otherwise

• if slope not given use midpoint formula

V(t)=mt+b

Value of asset at t = (The rate of depreciation)(Time) + (original purchasing price)

Rate of depreciation

V(t)= mt+b

SHOULD ALWAYS BE NEG

Forms of slope

Slope intercept : y=mx+b

point slope: y-y1=m(x-x1)

standard form: Ax+By=C

Midpoint: y2-y1/ x2-x1

independent

one solution (x,y)

slope of equation one is not equal two slope of two

inconsistent

no solution

slope of one = slope of two ; b1 is not equal to b2

dependent

Infinitely many solutions

slope of one = slope of two, b1=b2

should use parametric equations when it’d dependent

(t=z)