Answer to Question #185741 in Macroeconomics for Emmanuella Osei

Question

Q(1). A manufacturer's total cost consist of fixed overhead of $200 plus production cost of $50 per unit .Express the total cost as a function of the number of units produced and draw the graph.

Q(2). The Green-belt Company determines that the cost of manufacturing men's belts is $2 each plus $30p per day in fixed costs. The company sells the belts for $ 3each. What is the break-even point?

Suppose that a company has determined that the cost of producing x items is

*500+140x and that the price it should charge for one item is P= 200-x

(A). Find the cost of function.

(B). Find the revenue function.

( C).Find the profit function.

( D). Find the break even point.

Answer 1

a.)Total cost = (cost per unit )(no of units )+ overhead

Cost per unit =50

No of units =x

Overhead =200

TT =Total cost

TT=50x+200

2.Break even point is equal to

$$Fixed cost \over Selling price - variable cost$$

$$30p \over 3-2$$

=

$$=30p$$

3.

Cost function

$$C=500-140x$$

Revenue function

$$R=200x-x^2$$

Profit function

$$P=x^2+60x-500$$

Break even point

$$X=10$$