Math Problem Statement

The figure shows graphs of the total costs and the total revenue functions for a commodity. (Assume cost and revenue are measured in dollars.) R-C Match the question with the correct answer.

Determine the fixed cost. a. Total revenue function

Determine the dollars for break-even. b. 40 units

Estimate the marginal revenue. c. 7.5

Label function B d. 2.5

Label function A e. $300

Estimate the marginal cost. f. Total cost function

Determine the number of units to break-even. g. $200

Solution

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Math Problem Analysis

Mathematical Concepts

Cost Analysis
Revenue Analysis
Break-even Point
Marginal Cost
Marginal Revenue

Formulas

Break-even Point: Total Revenue = Total Cost
Marginal Cost: MC = ΔTotal Cost / ΔQuantity
Marginal Revenue: MR = ΔTotal Revenue / ΔQuantity

Theorems

Break-even Analysis
Marginal Cost and Revenue

Suitable Grade Level

Grades 10-12