Please only type answer a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y, where C is the consumption and Y is the family income level. Also find the family saving at an income level of $81,000? b) A dairy cooperative sells its members butter at the constant price of $1.70 per pound. For a typical member, fixed costs are $6000 and production costs are $1.40 per pound (same as variable cost). Find the break-even quantity in pounds for a typical member
Please only type answer a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y, where C is the consumption and Y is the family income level. Also find the family saving at an income level of $81,000? b) A dairy cooperative sells its members butter at the constant price of $1.70 per pound. For a typical member, fixed costs are $6000 and production costs are $1.40 per pound (same as variable cost). Find the break-even quantity in pounds for a typical member
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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a) Find the break-even income level of a family with a consumption function of C = 13000 + 5/6 Y, where C is the consumption and Y is the family income level. Also find the family saving at an income level of $81,000?
b) A dairy cooperative sells its members butter at the constant price of $1.70 per pound. For a typical member, fixed costs are $6000 and production costs are $1.40 per pound (same as variable cost). Find the break-even quantity in pounds for a typical member
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