-The firm's break-even point occurs at an output of

Question

Quizplus · Accepted Answer

To find the break-even point, we need to determine the level of output where total revenue (TR) equals total cost (TC).

Given that the selling price per unit (P) is $15, the fixed cost (FC) is $500, and the variable cost per unit (VC) is $5, we can use the following formula:

TR = P x Q
TC = FC + VC x Q
where Q is the level of output.

Setting TR = TC, we get:

15Q = 500 + 5Q

Simplifying, we get:

10Q = 500

Q = 50

Therefore, the break-even point occurs at an output of 50 units.

-The Firm's Break-Even Point Occurs at an Output of