A company is planning to manufacture PDAs personal digital assistants. The fixed cost will be $400,000 and it will cost $20 to produce each PDA. Each PDA will be sold for $100.a. Write the cost function, C, of producing x PDAs.b. Write the revenue function, R, from the sale of x PDAs.c. Write the profit function, P, from producing and selling x PDAs.d. Determine the break-even point. Describe what this means.
A company is planning to manufacture PDAs personal digital assistants. The fixed cost will be $400,000 and it will cost $20 to produce each PDA. Each PDA will be sold for $100.a. Write the cost function, C, of producing x PDAs.b. Write the revenue function, R, from the sale of x PDAs.c. Write the profit function, P, from producing and selling x PDAs.d. Determine the break-even point. Describe what this means.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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A company is planning to manufacture PDAs personal digital assistants. The fixed cost will be $400,000 and it will cost $20 to produce each PDA. Each PDA will be sold for $100.
a. Write the cost function, C, of producing x PDAs.
b. Write the revenue function, R, from the sale of x PDAs.
c. Write the profit function, P, from producing and selling x PDAs.
d. Determine the break-even point. Describe what this means.
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