A firm has the following total revenue and total cost schedules:
TR = $2Q.
TC = $4,000 1 $1.5Q.
a. What is the break-even level of output? What is the level of profits at sales of 9,000 units?
b. As the result of a major technological breakthrough, the total cost schedule is changed to:
TC= $6,000 +$0.5Q.
What is the break-even level of output? What is the level of profits at sales of 9,000 units?