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Rate of Change, Marginal Cost & Revenue · Question 19 of 79

Question 19

EasyOriginal question

A firm's cost is C(x)=3,000+25xC(x) = 3{,}000 + 25x rupees and its revenue is R(x)=40xR(x) = 40x rupees for xx units. At how many units does it break even?

Options for question 19

Show the answer and explanation
CorrectNot quiteAnswer D

Correct answer: D

Explanation

  1. Break-even is where revenue equals cost: 40x=3,000+25x40x = 3{,}000 + 25x.

  2. 15x=3,00015x = 3{,}000, so x=200x = 200 units.

Worth noting

120 divides the fixed cost by 25, the cost per unit; each unit only adds 40−25=1540 - 25 = 15 rupees towards it.

Concept
The break-even point
Typical time
60 s
Your time
—
The rule this testsCost, revenue and profit functions
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