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The management of a firm wants to introduce a new product. The product will sell tor $ 5 a unit and can be produced by
The management of a firm wants to introduce a new product. The product will sell tor $ a unit and can be produced by either of two scales of operation. In the first, total costs are
$$
In the second scale of operation, total costs are
$$
a What is the breakeven level of output for each scale of operation? Round your answers to the nearest whole number.
b What will be the firm's profits for each scale of operation if sales reach units? Round your answers to the nearest dollar.
Break even level scale :
Break even level scale :
Profits scale :
Profits scale :
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