Posted by **Rebekah ** on Wednesday, January 25, 2012 at 10:29pm.

If we produce 350 units of output, the total cost is $11,500. It costs us $12,900 to produce 420 units. If we assume the relationship is linear, determine the cost function.

- Quantitative analysis -
**Reiny**, Wednesday, January 25, 2012 at 10:44pm
treat your data as two ordered pairs

( 350 , 11500) and (420 , 12900)

find the equation like you would given any two ordered pairs,

i.e.

find the slope etc

- Quantitative analysis -
**Damon**, Wednesday, January 25, 2012 at 10:44pm
cost = slope (number of units) + constant

y = m x + b

11500 = 350 m + b

12900 = 420 m + b

solve for m and b by elimination or substitution

## Answer This Question

## Related Questions

- Business - A firm currently uses 50,000 workers to produce 120,000 units of ...
- economics - A firm currently uses 40,000 workers to produce 180,000 units of ...
- MicroEconomics - A firm currently uses 50,000 workers to produce 120,000 units ...
- microeconomics - A firm currently uses 40,000 workers to produce 180,000 units ...
- Microeconomics - A firm currently uses 40,000 workers to produce 180,000 units ...
- Economics - Suppose your firm needs to produce 40 units if computers at the ...
- Economics - Youâ€™ve been hired by an unprofitable firm to determine whether it ...
- Economics - In the short run a firm needs six units of labor to produce eight ...
- math,correction - Assume that each situation can be expressed as linear cost ...
- Algebra - The RideEm Bicycles factory can produce 140 bicycles in a day at a ...

More Related Questions