The price of a product is $1 a unit. A firm can produce this good with variable costs of $0.50 per unit and total fixed costs of $100.
a. What is the break‑even level of output?
b. What is the break‑even level of output if fixed costs increase to $180 and variable costs decline to $0.40 per unit?

Question

The price of a product is $1 a unit. A firm can produce this good with variable costs of $0.50 per unit and total fixed costs of $100.​
a. What is the break‑even level of output?
b. What is the break‑even level of output if fixed costs increase to $180 and variable costs decline to $0.40 per unit?

Quizplus · Accepted Answer

The Answer of The price of a product is $1 a unit. A firm can produce this good with variable costs of $0.50 per unit and total fixed costs of $100.​
a. What is the break‑even level of output?
b. What is the break‑even level of output if fixed costs increase to $180 and variable costs decline to $0.40 per unit?

The Price of a Product Is $1 a Unit