109k views
5 votes
To calculate a firm’s break-even point, you need to do what

User Mmelnik
by
7.6k points

1 Answer

1 vote
Create a profit function.

P(x)=R(x)-C(x)

Which is really just the difference of a revenue function minus a cost function. Though the revenue function will often be based upon a price and demand function as well :)

The you would just solve for when P(x)=0
User Konradstrack
by
7.9k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories