The average profit in dollars A that your baking business makes when baking n cakes is given by . Find and explain the vertical intercept.
A) If you make 88 cakes you make no profit.
B) If you make 88 cakes you maximize your profit.
C) If you make no cakes you make no profit.

Question

The average profit in dollars A that your baking business makes when baking n cakes is given by  . Find and explain the vertical intercept.
A) If you make 88 cakes you make no profit. 
B) If you make 88 cakes you maximize your profit. 
C) If you make no cakes you make no profit.

Quizplus · Accepted Answer

The vertical intercept represents the profit made when zero cakes are baked, which is the fixed cost or initial investment in the business. Therefore, the answer is C, as making no cakes would result in no profit and also no loss, and the fixed cost would be represented by the vertical intercept.

The Average Profit in Dollars a That Your Baking Business