If the price of one steam iron is dollar 48 and fied cost is 20 also the price p and the demand x for a particular steam iron are related by the equation X=1000-20p 1

Price of one steam iron (P) = 48

Demand Equation is X= 1000 - 20P , we can also write P = [50 - (X/20)]

Hence,Total Revenue is (TR)= PX

And the Total Cost is (TC) = 20X [since the fixed cost for one steam iron is 20]

Then Total Profit()= TR - TC = PX - 20X = [50 - (X/20)] X - 20X

Now, Total Average Profit (/X)= [50 - (X/20)] - 20

Answer 1:

Then Marginal Average Profit =  = - (1/20) = - 0.05

Answer 2:

At the break-even point, Total Revenue is (TR) is equals to Total Cost is (TC).Hence in this situation the Total Profit will be zero.

So, TR = TC

PX = 20X

[50 - (X/20)] X = 20X

50X - (X²/20) = 20X

30X - (X²/20) = 0

600X - X² = 0

X(600 - X) = 0

Hence X= 0 or 600

X = 0 is ignored because in this situation production has not started. So we take X= 600.

Then the break-even point is at X=600.

At this situation price will be P = 20 [ since P= [50 - (X/20)] = [50 - (600/20)] = 20 ]

Then TR =PX=20 x 600 =12000

TC= 20X=20 x 600 = 12000

hence the Total Profit()= 0.

That's all.Thank You.