Log in

View Full Version : Linear cost function equation


rgmba
Apr 24, 2010, 11:24 AM
I have been trying to figure out this exercise without luck; can you pelase help?

Manchester Foundry produced 45,000 tons of steel in March at a cost of £1,150,000. In April, the foundry produced 35,000 tons at a cost of £950,000. Using only these two data points, determine the cost function for Manchester.

galactus
Apr 24, 2010, 11:41 AM
It is just a line equation

Use y=mx+b to find the equation

Remember that m=\frac{y-y_{1}}{x-x_{1}}

Let x be the tons and y be the cost.

m=\frac{1150-950}{45-35}

Then, use either set of points in y=mx+b, along with the slope, to find b. You're done.

rgmba
Apr 24, 2010, 12:36 PM
Thank you very much