The revenue and cost functions for the housing developer are:
C(n) = 8 + 0.065n
R(n) = 1.6 √n

Suppose that the developer found a way to reduce her variable cost to $58 000 per house. How would this affect:
i) the minimum and maximum number of houses she could build?
ii) her maximum potential profit?

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  1. Is n the number of houses sold? What are the units of C and R? Dollars or thousands of dollars? Why should R be proportional to √n and not n?

    Why should there be a minimum number built (other than zero)?

    I can't make sense of your question.

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