Question

At a loss help please, thank you in advance

Answer 1

Answer:

Option B (Loss section)

Step-by-step explanation:

The cost function is a function which determines the total cost incurred by the production of a certain number of units produced. The revenue function is a function which determines the total revenue earned by selling the produced units. Break even point where the total costs are equal to the total revenue. It is a quantity where there is no profit or no loss. Since the total costs are equal to the total revenue, therefore both the equations can be equated. Therefore:

C = 20n + 500 and R = 25n implies that 25n = 20n + 500.

Solving this equation gives:

5n = 500

n = 100.

This means that the break even output is 100 units. So n = 50 will lie in the loss section since 50 is less than 100. Option B is the correct answer!!!