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Rate of Change, Marginal Cost & Revenue · Question 22 of 79

Question 22

EasyOriginal question

A firm's cost is C(x)=4,500+30xC(x) = 4{,}500 + 30x rupees and its revenue is R(x)=75xR(x) = 75x rupees for xx units. What is the break-even output?

Options for question 22

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Break-even is where R(x)=C(x)R(x) = C(x): 75x=4,500+30x75x = 4{,}500 + 30x.

  2. 45x=4,50045x = 4{,}500, so x=100x = 100 units.

Worth noting

60 divides the fixed cost by the price, 75, not by the margin per unit, 75−30=4575 - 30 = 45.

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