1. A company models the price of its product as $p = 50 - 2x$, where $x$ is the number of units sold. A student claims the revenue expression is $R(x) = 50x - 2x^2$. Which statement best explains why this revenue expression is quadratic?
- A.Because the cost function contains an $x^2$ term
- B.Because multiplying the linear price function by $x$ produces a squared term
- C.Because the demand relationship is quadratic
- D.Because revenue always involves squaring the quantity
View Answer
Answer: Because multiplying the linear price function by $x$ produces a squared term
Trace where the quadratic term arises: Revenue $= p \times x = (50 - 2x) \times x = 50x - 2x^2$. The $x^2$ term appears because a linear expression in $x$ (the price) is multiplied by $x$ (the quantity). Why the correct answer works: Option B correctly identifies that the product of a linear function of $x$ and $x$ itself yields a degree-2 polynomial. Why distractors fail: Option A incorrectly attributes the quadratic nature to the cost function, which is not involved in computing revenue. Option C states the demand relationship is quadratic, but $p = 50 - 2x$ is linear. Option D makes an incorrect general claim; revenue is not always quadratic — it depends on the model.