Question

Asked Jan 9, 2019

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A firm produces a product that has the production cost function C(x)=120x+3210 and the revenue function R(x)=150x. No more than 50 units can be sold. Find and analyze the break-even quantity, then find the profit function. The break even quantity is ___ units.

Step 1

C(x)=120x+3210

R(x)=150x

For break even, C(x)=R(x)

Step 2

For break even, the firm needs to sell 107 units. But maximum units sold is limited to 50. So the firm wont be able to break even within the given constraint.

Step 3

Profit function, P(...

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