​You Want to Start a Firm Whose Output You Believe

question 2

Short Answer

​You want to start a firm whose output you believe you can sell for $25 per unit. The operation will require fixed costs of $10,000, and the variable costs are expected to be $18 a unit. What will be the break-even level of output?

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Definitions:

Implied

In legal context, refers to obligations or rights that are not explicitly stated but are understood as a part of the agreement or contract.

Intervening Illegality

A situation where a change in law or illegal act by a third party prevents the fulfillment of a contract, thereby excusing performance by the contracted parties.

Embargo

A government order that restricts trade or exchange with a particular country or the exchange of specific goods.

Sophisticated Computer

A highly advanced and complex computer system capable of performing intricate tasks or simulations, often used in professional or research contexts.