Question

The owner of a small restaurant can prepare a particular meal at a cost of Rupees 100. He estimates that if the menu price of the meal is x rupees, then the number of customers who will order that meal at that price in an evening is given by the function D(x) = 200 – x. Express his day revenue, total cost and profit on this meal as functions of x.

Answer 1

Cost of one meal = ₹ 100 

Total cost = ₹ 100 (200 – x) 

Number of customers = 200 – x 

Day revenue = ₹ (200 – x) x

Total profit = day revenue – total cost 

= (200 – x) x – (100) (200 – x)