Question

as a linear cost function. Find the cost function. Assume that the situation can be expressed Fixed cost is $100 20 items cost 500 to produce. The linear cost function is C(x)= |0

Answer 1

Production cost is $20 per item.

Explanation:

Fixed cost is $100 and 20 items cost $500 to produce.

`C=100+x*production cost`

`500=100+20*production cost`

`400=20*production cost`

Production cost = $20.

So,
`C(x)=20x+100`, where C is total cost and x is the number of items produced.