Question

A factory produces beach umbrellas. They have a fixed cost they must pay no matter how many umbrellas they produce, and a variable cost they must pay for each umbrella they produce. The cost of producing x umbrellas is modeled by the function upper C left parenthesis x right parenthesis equals 2.83 x plus 1,350. Identify and interpret the initial value.

Answer 1

The initial value in this function is 1,350. This represents the fixed cost that the factory must pay regardless of how many umbrellas they produce. In other words, even if the factory does not produce any umbrellas, they still have to pay 1,350 in costs.