Question: 1. A firm manufactures product x and can sell any amount at a price of £25 a unit. The firm has to pay fixed costs of £200 plus a marginal cost of £20 for each unit produced.
(a) How much of x must be produced to make a profit?
(b) If price is cut to £24 what happens to the break-even output?
2. If y = 16 + 22x and y = -2.5 + 30.8x, solve for x and y.