Determine the revenue-total cost and profit function – Business Economic

Determine the revenue-total cost and profit function – Business Economic

Suppose you run a manufacturing business that is involved in manufacturing and selling a single product. The fixed cost to run the business is $15,000 and the constant marginal cost is $7.50 per unit. The sale price of your product is $15 per unit.

(a) Find the revenue function, total cost function and profit function. (Let x be the output level)

(b) Using the functions in part (a), find the break­even point.

(c) State the condition(s) under which you can make a profit