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akuaclark
Jun 9, 2009, 05:02 PM
Finding the cost function when fixed cost is $100 and 50 items cost $1600 to produce

Perito
Jun 9, 2009, 07:43 PM
This page describes the cost function

The Cost Function (http://homepage.newschool.edu/het/essays/product/cost.htm)

Quite honestly, I've never heard of it before.

jcaron2
Jun 9, 2009, 08:56 PM
Perito, nice link. But perhaps this is a case of unfortunate wording of a much simpler problem.

If the total cost to produce 50 items is $1600, and the fixed cost is $100, then it must have cost $30 each to produce the items. (i.e. solve 50x+100=1600). It is then very easy to write a function for the cost of producing n items:

C = 30n + 100

Could it be that simple?

Josh