it costs $80 to produce any quantity of output and $1.60 for any additional unit of output. write down the equation and graph the total cost function
"any additional" to what ?
Confusing wording.
that is basically the statement don't understand it too.
To write down the equation for the total cost function, we need to consider the fixed cost and the variable cost. The fixed cost is the cost that remains constant regardless of the quantity of output, which in this case is $80. The variable cost is the cost that increases with each additional unit of output, which in this case is $1.60.
Let's denote the quantity of output as "x" and the total cost as "TC". The equation for the total cost function is:
TC = Fixed Cost + (Variable Cost per unit * Quantity of output)
= $80 + ($1.60 * x)
= $1.60x + $80
To graph the total cost function, we plot the quantity of output on the x-axis and the total cost on the y-axis. The fixed cost remains constant, so we start the graph at $80 on the y-axis. The variable cost increases at a constant rate of $1.60 per unit of output, so the graph will have a positive slope.
Here is a visual representation of the graph of the total cost function:
^
|
Total Cost | \
(TC) | \_____
| \_ (x-axis: Quantity of Output)
| Quantity of Output (x)
----------------->