Respuesta :

The firm will breakeven when 40 units of the good is produced.

Cost is given as C = 40x + 400

Revenue is given as: R = 50x

In this case, the point of breakeven will be:

Cost = Revenue

40x + 400 = 50x

Collect like terms

50x - 40x = 400

10x = 400

Divide both side by 20

10x/10 = 400/10

x = 40

There will be breakeven at 40 units

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