The cost function of a firm is given by $T C = x^{2} + 300 x + 10000$ , where x is the number of units of output. If the market price is Rs 1000, how many units must the company sell to break even?

50 units

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100 units

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150 units

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200 units

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Solution

The correct option is D
200 units

At the break-even point, TR=TC
$T C = x^{2} + 300 x + 10000 T R = 1000 x x^{2} + 300 x + 10000 = 1000 x x^{2} - 700 x + 10000 = 0 (x - 200) (x - 500) = 0$

Break-even point is the point where the TR=TC for the first time. It occurs when x =200

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The cost function of a firm is given by TC=x2+300x+10000, where x is the number of units of output. If the market price is Rs 1000, how many units must the company sell to break even?

The correct option is D 200 units At the break-even point, TR=TC TC=x2+300x+10000TR=1000xx2+300x+10000=1000xx2−700x+10000=0(x−200)(x−500)=0 Break-even point is the point where the TR=TC for the first time. It occurs when x =200

The cost function of a firm is given by $T C = x^{2} + 300 x + 10000$ , where x is the number of units of output. If the market price is Rs 1000, how many units must the company sell to break even?

The correct option is D
200 units

At the break-even point, TR=TC
$T C = x^{2} + 300 x + 10000 T R = 1000 x x^{2} + 300 x + 10000 = 1000 x x^{2} - 700 x + 10000 = 0 (x - 200) (x - 500) = 0$

Break-even point is the point where the TR=TC for the first time. It occurs when x =200