Find the break-even point for the firm whose cost function C and revenue function R are given.
C(x) = 16x + 10,000; R(x) = 21x
Wouldn't it just be 16x+10,000=21x? Do you know how to go from here?
To find the break-even point for the firm, we need to equate the cost function and the revenue function and solve for 'x,' which represents the number of units sold.
The cost function is given by:
C(x) = 16x + 10,000
The revenue function is given by:
R(x) = 21x
To find the break-even point, we need to find the value of 'x' where the cost function is equal to the revenue function:
16x + 10,000 = 21x
To solve this equation, we can isolate the 'x' term on one side:
10,000 = 21x - 16x
Combine like terms:
10,000 = 5x
Divide both sides of the equation by 5:
10,000/5 = x
2000 = x
Therefore, the break-even point for the firm is when they sell 2000 units.