A triple A battery manufacturer determines that at a price of K50 50 units of the triple A batteries are sold, further analysis showed that at a price of K60, 40 units are sold. The manufacturer also determines that the fixed costs of producing x units of the triple A type of batteries is 300 and the variable costs are 20. a. Determine i The price function in terms p = mx ii. The total revenue function "R(x)" iii. The total cost function C(x) Find the profit function "(x)" b. Under what conditions will the firm break-even c. Determine algebraically at break-even for quantity i The total revenue The total cost ii. 9 d. On the same graph sketch the R(x) and C(x), indicating clearly the break-even points From "d", giving a reason for your answer, which break-even values are feasible for business sustenance e. 0 [1] iv. 0 77 0 £ Using your result in "e" at what price should the batteries be sold at to break-even as the case of "d" On a separate graph, search the profit function (x) 99 0
A triple A battery manufacturer determines that at a price of K50 50 units of the triple A batteries are sold, further analysis showed that at a price of K60, 40 units are sold. The manufacturer also determines that the fixed costs of producing x units of the triple A type of batteries is 300 and the variable costs are 20. a. Determine i The price function in terms p = mx ii. The total revenue function "R(x)" iii. The total cost function C(x) Find the profit function "(x)" b. Under what conditions will the firm break-even c. Determine algebraically at break-even for quantity i The total revenue The total cost ii. 9 d. On the same graph sketch the R(x) and C(x), indicating clearly the break-even points From "d", giving a reason for your answer, which break-even values are feasible for business sustenance e. 0 [1] iv. 0 77 0 £ Using your result in "e" at what price should the batteries be sold at to break-even as the case of "d" On a separate graph, search the profit function (x) 99 0
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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