Given the following information, answer the following:
TR=$3Q
TC= $1,200 = $2Q
1. what is the break-even level of output?
2. If the firms sells 1,300 units, what are its earnings or losses?
3. If sales rise to 2,000 units, what are the firms earnings or losses?
4. If the total cost equation were TC=$2,000 = $1.80Q, what happens to the break-even level of output units?
total cost ? = 1200 = 2 * 600
so q = 600 ?
Total revenue? = 3 q = 1800 ??
Makes no sense
Perhaps cost = 1,200 PLUS 2 Q ???