Q2. A company manufactures and sells wallets. The selling price is 54.90 AED per wallet. The total cost function is linear, and costs amount to 50,000 AED for 2000 wallets and 32,120 AED for 800 wallets. a) Find the cost function. b) Find the break-even quantity.

Q2. A company manufactures and sells wallets. The selling price is 54.90 AED per wallet. The total cost function is linear, and costs amount to 50,000 AED for 2000 wallets and 32,120 AED for 800 wallets. a) Find the cost function. b) Find the break-even quantity.

EBK HEALTH ECONOMICS AND POLICY

7th Edition

ISBN:9781337668279

Author:Henderson

Publisher:Henderson

Chapter4: Economic Evaluation In Health Care

Section: Chapter Questions

Problem 7QAP

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Q2.
A company manufactures and sells wallets. The selling price is 54.90 AED per wallet. The total
cost function is linear, and costs amount to 50,000 AED for 2000 wallets and 32,120 AED for 800
wallets.
a) Find the cost function.
b) Find the break-even quantity.

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