The production graph of the company is a quadratic graph
The true statements about the production graph are:
- When producing 5,000 sets of headphones per week, the weekly earnings is $0.
- Producing 2,500 sets of headphones per week will give the maximum amount of weekly earnings.
- The maximum possible earnings is about $6,250 per week.
- If production is increased from 1,500 to 2,000 sets of headphones per week, then the weekly earnings will also increase
How to interpret the model?
To interpret the model, we simply evaluate the options one after the other
Producing 5000 sets weekly
From the graph, we have:
(x,y) = (5000,0)
This means that a weekly production of 5,000 sets of headphones give an earning of $0.
Hence, this option is true
Increased production from 3000 to 4000
From the graph, the function value decreases when x increases from 3000 to 4000.
This means that this option is false
Producing 2500 sets
The production of 2500 sets give a maximum earning of $6250
This means that options (c) and (d) are true
Increased production from 1500 to 2000
From the graph, the function value increases when x increases from 1500 to 2000.
This means that this option is true
Hence, the true statements are: (a), (c), (d) and (e)
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