A producer faces a fixed cost of Rs. 50 and a variable cost Rs. 5 per unit of output when he produces less than 200 units of output. Assuming that total cost function is linear, determine the equation of the total cost of function. • What is the break-even level of output if the price of output is Rs. 10 per unit. Also draw the relevant graphs.
A producer faces a fixed cost of Rs. 50 and a variable cost Rs. 5 per unit of output when he produces less than 200 units of output. Assuming that total cost function is linear, determine the equation of the total cost of function. • What is the break-even level of output if the price of output is Rs. 10 per unit. Also draw the relevant graphs.
Chapter7: Systems Of Equations And Inequalities
Section7.3: Systems Of Nonlinear Equations And Inequalities: Two Variables
Problem 4SE: If you graph a revenue and cost function, explain how to determine in what regions there is profit.
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Transcribed Image Text:A producer faces a fixed cost of Rs. 50 and a
variable cost Rs. 5 per unit of output when he produces less
than 200 units of output.
• Assuming that total cost function is linear, determine the
equation of the total cost of function.
• What is the break-even level of output if the price of
output is Rs. 10 per unit. Also draw the relevant graphs.
• Determine the producer's net revenue if output is 12
units and the price of output is Rs. 5, Rs. 10 and Rs. 15
respectively.
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