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1) 3x + 4y − 6 = 0
2) 2y − 5 = 0
ex. 2x + 3 = 0
Marginal Cost
2 2.5 3 3.5 4
L3 - 10
90
80
70
60
2 2.5 3 3.5 4
L3 - 12
1. Suppose that Avis leases a Ford Focus for $32 per day plus 45 cents per mile,
while Enterprise leases the same car for $23 per day plus 60 cents per mile. If a
customer plans to rent the car for a one day trip of 100 miles, which company
should she use to minimize her cost? Find the number of miles for which the
charge is the same for the two companies.
3. For a certain product, the cost function is linear with fixed costs of $480. If the
product will sell for $25 per unit and the break even quantity is 80 units, find
the marginal cost and marginal profit for the product. Remember that marginal
refers to the rate of change of the function if one more item is sold. How is it
found?
4. Suppose the supply and demand functions for a given product are
S(q) = 3.6q + 86 and D(q) = −2.8q + 246.
(a) How many items will the supplier provide for a price of $86?
(b) Find the equilibrium quantity and price.
6. Projected spending on home care and medical equipment (in billions of dollars)
from 2004 to 2016 is given in the following table.
Year x 2004 2006 2008 2010 2012 2014 2016
Spending y 60 74 90 106 118 128 150
(a) Find the least squares line and the correlation coefficient.
(b) Use the regression line to find the projected spending in 2018.
(c) If you have graphing capability, draw a scatterplot and add the least squares
line.