Answered

Join the growing community of curious minds on IDNLearn.com and get the answers you need. Discover the information you need from our experienced professionals who provide accurate and reliable answers to all your questions.

Lot’s Wife Manufacturing produces rear-view video systems for buses. The firm’s cost function is TC = 2,000 + 120 Q. If the systems sell for $145, what is the break-even rate of production?

Sagot :

Ogorwyneidn

Answer:

80

Explanation:

in this question we have the cost function to be

TC = 2,000 + 120 Q.

breakeven point is at total cost = total revenue

total revenue = p*q

= 145 *Q= 145Q

tc = total cost = 145Q

145Q = 2000 + 120Q

We collect like terms from this equation above

145Q-120Q= 2000

25Q = 2000

divide through by 25

Q = 2000/25

q = 80

the breakeven rate of production is 80 quantities.

Your presence in our community is highly appreciated. Keep sharing your insights and solutions. Together, we can build a rich and valuable knowledge resource for everyone. Thank you for choosing IDNLearn.com for your queries. We’re committed to providing accurate answers, so visit us again soon.