Suppose the cost function associated with a product is C(x) = cx + F dollars and the revenue function is R(x) = sx, where c denotes the unit cost of production, s the unit selling price, F the fixed cost incurred by the firm, and x the level of production and sales. Find the break-even quantity and the break-even revenue in terms of the constants c, s, and F.

Question

Break-even quantity and cost:

Answer 1

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break even quantity
F/(s-c)

Revenue

s(f/(s-c))

Answer 2

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