Suppose you are the manager of a firm. The accounting department has provided cost estimates, and the sales department sales estimates, on a new product. Analyze the data they give you, determine what it will take to break even, and decide whether to go ahead with production of the new product. The product has a production cost function C(x) = 375x+6,375 and a revenue function R(x) = 500x. The break-even quantity is units. …..

Suppose that Alexander’s Coffee Shop has fixed costs of $18 and variable costs per unit of $4. The demand function for the coffee shop is P = 24 − 2Q. Given the demand and cost functions, calculate the maximum profit that Alexander’s Coffee Shop can earn.

Cost, revenue, and profit are in dollars and x is the number of units. If the marginal cost for a product is MC = 2x + 20 and the total cost of producing 30 units is $2000, find the cost of producing 45 units. X $