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# Essential Mathematics for Economics and Business, 4 th Edition 1

## Worked Example 3.14

John Wiley
Wiley and
and Sons
Sons 2013
2013
Chapter 3: Simultaneous Equations

## www.wiley.com/college/Bradley John Wiley and Sons 2013

Total Revenue: Plot TR = 3Q
Q 0 10 15
TR = 3Q 0 30 45
45
40

35
TR = 3 Q
TR 30

25

20
15
10

5
0 Q
0

10

12

14
Figure 3.10
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Total Cost: Plot TC = 10 + 2Q
Q 0 10 15
TC = 10 + 2Q 10 30 40
45
40

35
TR 30
TC
25

20
15
10

5
0 Q
0

10

12

14
Figure 3.10
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Break-even when Total Revenue = Total Cost

45
40

35
TR 30
TC
25

20
15
10

5
0 Q
10

12
4
2

8
0

Figure 3.10
www.wiley.com/college/Bradley John Wiley and Sons 2013
Break-even when Total Revenue = Total Cost

TC TR
45
40
Break-even point
35

TR = TC = 30
25

20
15
10 Break-even quantity
5 Q = 10
0 Q
2

10

12
8
0

Figure 3.10
www.wiley.com/college/Bradley John Wiley and Sons 2013