The fixed cost of a new product is rs.3000 and the variable cost per unit is rs.800. if the demand function is given by p(x)= 4500 – 100x, find the break – even points.
Answers
We have learnt in calculus that when 'y' is a function of 'x', the derivative of y w.r.to x i.e. dy
dx
measures the instantaneous rate of change of y with respect to x. In Economics and commerce
we come across many such variables where one variable is a function of the other. For example,
the quantity demanded can be said to be a function of price. Supply and price or cost and
quantity demanded are some other such variables. Calculus helps us in finding the rate at which
one such quantity changes with respect to the other. Marginal analysis in Economics and
Commerce is the most direct application of differential calculus. In this context, differential calculus
also helps in solving problems of finding maximum profit or minimum cost etc., while integral
calculus is used to find he cost function when the marginal cost is given and to find total revenue
when marginal revenue is given.