An electronics firm is currently manufacturing an item that has a variable cost of $ 0.50 per unit and a selling price of $ 1.00 per unit. Fixed costs are $ 14,000. The current volume is 30 comma 000 units. The firm can substantially improve product quality by adding a new piece of equipment at an additional fixed cost of $ 6,000. The variable cost would increase to $ 0.60, but volume should jump to 50,000 units due to a higher-quality product.
Based on the given information, the decision should be to:
a. For Smithson Cutting, the break-even point in units?
b. For Smithson Cutting, the break-even point in dollars =?

6. why the aggregate supply curve slopes upward in the short run in the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. several theories explain how this might happen. for example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. consider a soybean farmer who expects a price level of 100 in the coming year. if the actual price level turns out to be 90, soybean prices will , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by the quantity of soybeans supplied. if other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to the natural level of output in the short run.