Find the Break-Even Point for the Firm Whose Cost Function

question 124

Multiple Choice

Find the break-even point for the firm whose cost function C and revenue function R are given. C(x) = 16x + 24,000; R(x) = 24x

• A) For a break-even operation, the firm should manufacture 24,000 units of its product, resulting in a break-even revenue of $720,000.
• B) For a break-even operation, the firm should manufacture 24,000 units of its product, resulting in a break-even revenue of $72,000.
• C) For a break-even operation, the firm should manufacture 3,000 units of its product, resulting in a break-even revenue of $72,000.
• D) For a break-even operation, the firm should manufacture 3,000 units of its product, resulting in a break-even revenue of $720,000.