The MBF plant costs a total of $ 45,000 if it produces 500 products, and a total cost of $ 100,000 if it produces 1,000 of the same product. If each item sells for $ 100, it is desirable to calculate : Draw a digaram to determine the
The MBF plant costs a total of $ 45,000 if it produces 500 products, and a total cost of $ 100,000 if it produces 1,000 of the same product. If each item sells for $ 100, it is desirable to calculate : Draw a digaram to determine the
Principles of Economics 2e
2nd Edition
ISBN:9781947172364
Author:Steven A. Greenlaw; David Shapiro
Publisher:Steven A. Greenlaw; David Shapiro
Chapter7: Production, Costs, And Industry Structure
Section: Chapter Questions
Problem 25RQ: In choosing a production technology, how will firms react if one input becomes relatively more...
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![The MBF plant costs a total of $ 45,000 if
it produces 500 products, and a total cost
of $ 100,000 if it produces 1,000 of the
same product. If each item sells for $ 100,
it is desirable to calculate :
a. Draw a diagram to determine the
breaking point for it.
B. If we want to make a profit of $ 20,000
by selling 2,500 products, what is the
variable cost?
F Profit(P) = pQ - (F + vQ)
%3D
TR=pQ
TC=F+vQ
Q=F/(p-v)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fbe33b80b-11aa-4afe-b87d-0a149f6d1673%2F387b482b-9524-49e5-becf-c9000709f509%2Fdma1js_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The MBF plant costs a total of $ 45,000 if
it produces 500 products, and a total cost
of $ 100,000 if it produces 1,000 of the
same product. If each item sells for $ 100,
it is desirable to calculate :
a. Draw a diagram to determine the
breaking point for it.
B. If we want to make a profit of $ 20,000
by selling 2,500 products, what is the
variable cost?
F Profit(P) = pQ - (F + vQ)
%3D
TR=pQ
TC=F+vQ
Q=F/(p-v)
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