Assume the total monthly cost (TC) equation for a firm is TC = $1,500 + 4.5x (where x = units produced). Should the firm accept a 2,000-unit order from a customer at a price of $5 per unit if excess capacity exists and there are no other competing orders?

Assume the total monthly cost (TC) equation for a firm is TC = $1,500 + 4.5x (where x = units produced). Should the firm accept a 2,000-unit order from a customer at a price of $5 per unit if excess capacity exists and there are no other competing orders?

No, the firm has not reached break-even point.

Yes, the firm will earn $1,000 more in pofit if they accept the order.

Yes, the firm will reach break-even point if they accept the order

No, the firm will lose $500 on this order.