If fixed cost of 20 article is 500 and variable cost for each article is 40. Find the total cost function? Also ,find the total

Question

2 years ago

14

cost of 90 articles?

1 answer:

Deffense [45] · Answer 1 · 2022-02-28T00:45:12+03:00

Answer:

Cost function = 40a + 500

Cost of 90 articles = $4,100

Step-by-step explanation:

The fixed cost is $500 and it will.not change regardless of production level.

The Variable cost is $40 and increases by every additional unit produced.

Assume the number of articles produced is a.

Cost function would be:

Total cost = Variable cost * Number of articles + Fixed cost

TC = 40a + 500

Using this, the cost of 90 articles is:

= 40 * 90 + 500

= $4,100