Question

A firm produces a product that has the production cost function

​C(x)equals=195195xplus+88408840

and the revenue function

​R(x)equals=260260x.

No more than

229229

units can be sold. Find and analyze the​ break-even quantity, then find the profit function.

Answer 1

136 units

65x - 8840

Explanation:

Given,

The production cost function is,

`C(x) = 195x + 8840`

Revenue function,

`R(x)=260x`

So, profit would be,

P(x) = Revenue - cost

= 260x - 195x - 8840

= 65x - 8840

In break even condition,

Profit, P(x) = 0

65x - 8840 = 0

65x = 8840

⇒ x = 136.

Hence, the break even quantity is 136 units.