SOLUTION: Find the break-even point for the firm whose cost function C and revenue function R are given. C(x)=0.3x+140; R(x)=0.5x a. P(680)=340 b. P(700)=350 c. P(690)=345

Algebra ->  Expressions-with-variables -> SOLUTION: Find the break-even point for the firm whose cost function C and revenue function R are given. C(x)=0.3x+140; R(x)=0.5x a. P(680)=340 b. P(700)=350 c. P(690)=345       Log On


   

Question 1053360: Find the break-even point for the firm whose cost function C and revenue function R are given.
C(x)=0.3x+140; R(x)=0.5x
a. P(680)=340
b. P(700)=350
c. P(690)=345
d. P(720)=360
e. P(710)=355
Please break this down for me so I can understand. Thank you.
Answer by Fombitz(32388) About Me  (Show Source):
You can put this solution on YOUR website!
At breakeven, C%28x%29=R%28x%29,
0.3x%2B140=0.5x
0.2x=140
x=700
The profit function is,
P%28x%29=R%28x%29-C%28x%29
P%28x%29=0.5x-%280.3x%2B140%29
P%28x%29=0.2x-140
So at x=700
P%28700%29=0.2%28700%29-140
P%28700%29=140-140
P%28700%29=0
By definition, at breakeven C%28x%29=R%28x%29 so P%28x%29=0
So for x%3E700, you will make profit.
None of those answers is correct.