Question

The total revenue function is TR = 70 - 0.52n, where n is the number of units sold. What is the question?

a) Find the marginal revenue when 10 units are sold.
b) Determine the break-even point for the revenue function.
c) How does the price per unit affect total revenue?
d) Calculate the profit function for the given revenue.

Answer 1

To determine the break-even point for the revenue function, set the total revenue equal to the total cost and solve for the quantity.

Step-by-step explanation:

The question is to determine the break-even point for the revenue function. The break-even point is the quantity of units sold where the total revenue equals the total cost. To find this point, set the total revenue equal to the total cost and solve for the quantity:

TR = TC

70 - 0.52n = TC

Next, solve for n:

n = (70 - TC) / 0.52

The break-even point is the quantity of units sold that makes the total revenue equal to the total cost.