March 29, 2017

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A manufacturer produces certain devices. The fixed cost of production is $2000. The first unit produced cost $2 and the cost per unit increases by 20 cents or each additional unit produced. What is the total cost C of producing x units?

  • Math - ,

    The premise is faulty. From your data, the first would cost $2 to produce, the second $2.20, the third $2.40, which sounds illogical. Articles can be produced more cheaply on a mass basis.

    Assuming you mean that after first one, the remaining units cost $.20 each:

    C = $200 + .2(x - 1)

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