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QUESTION IMAGE

select the correct answer. an entrepreneur estimates his total profit (…

Question

select the correct answer.

an entrepreneur estimates his total profit (total revenue minus total cost) for his proposed company as \\(p(x) = x^3 - 4x^2 + 5x - 20\\), where \\(p\\) is in hundreds of dollars and \\(x\\) is number of years the company has been in business. in which year (\\(x\\)) will the entrepreneur break even?

  • year 1
  • year 2
  • year 3
  • year 4

Explanation:

Set the profit function to zero for break-even

$$ p(x) = x^3 - 4x^2 + 5x - 20 = 0 $$

Factor the polynomial by grouping

$$ LATEXBLOCK0 $$

Solve for real roots of x

$$ LATEXBLOCK1 $$

Answer:

  • year 1
  • year 2
  • year 3
  • year 4 (Correct answer)