Find the appropriate cost function in each case:
Fixed cost, $200; 50 items cost $2000 to produce. help me please! ty!!
To find the appropriate cost function in this case, we need to use the information provided.
Here's how you can approach the problem:
1. Identify the fixed cost: The fixed cost is $200. This is the cost that remains constant regardless of the number of items produced.
2. Determine the variable cost: We are told that 50 items cost $2000 to produce. We can find the variable cost per item by dividing the total cost by the number of items. It would be:
Variable cost per item = Total cost / Number of items produced
Variable cost per item = $2000 / 50
Variable cost per item = $40
3. Write the cost function: A cost function represents the total cost as a function of the number of items produced. In this case, the cost function can be written as:
Cost = Fixed cost + (Variable cost per item * Number of items)
Cost = $200 + ($40 * Number of items)
So, the appropriate cost function in this case is:
Cost = $200 + ($40 * Number of items)
Using this cost function, you can calculate the total cost for any given number of items produced.
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.