Respuesta :

The firm will breakeven when 20 units of the good is produced.

Cost is given as C = 50x + 400

Revenue is given as: R = 70x

In this case, the point of breakeven will be:

Cost = Revenue

50x + 400 = 70x

Collect like terms

70x - 50x = 400

20x = 400

Divide both side by 20

20x/20 = 400/20

x = 20

There will be breakeven at 20 units

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