Question

Suppose you have been tasked with regulating a single monopoly firm that sells 50-pound bags of concrete. The firm has fixed costs of $30 million per year and a variable cost of $6 per bag no matter how many bags are produced.

Answer 1

To cover his fixed costs he should sell 600,000 bags
To cover his variable costs he should sell another 72,000 bags
That to reach the breakeven point