# Answer to Question #75198 in Microeconomics for mesh

Question #75198

A manufacturer sells his product at (49-2x) per unit and it costs him 2 shillings per unit to manufacture. if his fixed costs are 30 shillings

a)determine the break even point in terms of cost and quantity

b) determine the level output that will maximize profits

a)determine the break even point in terms of cost and quantity

b) determine the level output that will maximize profits

Expert's answer

A manufacturer sells his product at P = (49-2x) per unit and it costs him AVC = 2 shillings per unit to manufacture. If his fixed costs are FC = 30 shillings, then:

a) the break even point in terms of cost and quantity is FC/(P - AVC) = 30/(49 - 2x - 2) = 30/(47 - 2x).

b) the level output that will maximize profits is at MR = MC = P.

MC = AVC = 2, so:

49 - 2x = 2,

x = 23.5 units.

a) the break even point in terms of cost and quantity is FC/(P - AVC) = 30/(49 - 2x - 2) = 30/(47 - 2x).

b) the level output that will maximize profits is at MR = MC = P.

MC = AVC = 2, so:

49 - 2x = 2,

x = 23.5 units.

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## Comments

Assignment Expert05.04.18, 17:01Dear visitor,

please use panel for submitting new questions

ahmed05.04.18, 10:04given the following function,determine the turning points and establish their nature 2x^3-x^2/2-35x+1=y

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