Question
Find the appropriate cost function in each case:
Fixed cost, $200; 50 items cost $2000 to produce. help me please! ty!!
Fixed cost, $200; 50 items cost $2000 to produce. help me please! ty!!
Answers
MathMate
The fixed cost is the fixed amount required irrespective of the quantity produced ($50). The variable cost is proportional to the quantity produced ($2000/50units=$40/unit).
The cost function is therefore:
C(x) = 50 + 40x
where
x=number of unit produced, and
assuming the variable cost does not change with x.
The cost function is therefore:
C(x) = 50 + 40x
where
x=number of unit produced, and
assuming the variable cost does not change with x.