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

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