A manufacturer has determined that if it sets the price of paper at x dollars per ream, then its monthly profit can be represented by the equation P = (6000 - 400x)(x - 2).
Determine the y-intercept and explain what it means.
The teacher said that the y-intercept is (0, -12,000), but I cannot figure out how to determine that.
Thank you.
Y-intercept is the point where x=0.
From the given function,
P=(6000-400x)*(x-2)
we substitute x=0 to get
P=(6000-400(0))*(0-2)
=6000*(-2)
=-12000
It also means the loss incurred when the manufacturer gives the paper away ("selling" at a price of x=$0 per ream).