Question

A company pays x dollars per unit for a product. The selling price is represented by the function p.

a. What does f(x)= x represent in this situation? Describe a
transformation of the graph off that results in the graph of p.
b. How does the company determine the selling price of a product?

Answer 1

The company determines the selling price by adding a profit margin and considering factors like production cost, market conditions, competition, fixed costs, and customer demand.

The formula is typically: Selling Price = Production Cost + Profit Margin + Other Costs