This lesson covers the concept of the break-even point in a linear profit model, which includes linear revenue and cost. The instructor uses the example of making and selling chocolate bars to explain how to find the break-even point, where revenue equals cost and profit is zero. The lesson covers how to graph the linear equations and find the intersection point using the calculator's InterSec command. Additionally, the instructor demonstrates how to find the profit function and identify the equilibrium point where profit is zero. Overall, the lesson provides a clear and practical explanation of how to handle situations involving a linear profit model.
Handle situations involving a Linear Profit model (which includes Linear Revenue and Linear Cost). Handle means interpret the situation in order to solve for the input (quantity), output (profit), or any of the parameters (unit/marginal cost, unit/marginal price, fixed cost), whatever is missing.
Check out www.themathdude.org for more videos.