Help me
I don't know what is a cost function and how it is formulated?
Can anyone tell me the basics of this function and method of formulating?
I will highly appriciate...
Help me
I don't know what is a cost function and how it is formulated?
Can anyone tell me the basics of this function and method of formulating?
I will highly appriciate...
Check this site out, you need MS word or something equivalent and when the document is loaded, search for the word "cost"
http://www.math.tamu.edu/AppliedCalc...k/Chapter1.doc
Work through the info provided at Mr. Gunther's link--it'll give you a fuller picture of linear functions in general, and how they work to model production costs, in the right situation.
If you're familiar with the general linear function
y = f(x) = mx + b
... then using this as a way of modeling your production costs, the Cast of Characters goes like this:
y represents your total costs, which are a result of your fixed costs + the variable costs;
m is the variable cost per unit produced;
x is the number of units produced; and
b represents your fixed costs.
You might be pleasantly surprised to find out that this is just a way of using symbols to say what you already know. If I said that fixed costs were $1,000 (no matter how many units I make), and also that my variable costs were 75 cents per unit produced, and I asked you how much it would cost me to make 100 units, you'd reason...
"75 cents times 100 units = $75, plus $1,000 fixed costs; OK it'd cost you $1,075 to make 100 units." Well, you just did y = mx + b in your head.
Best of luck!
...it was early and I was full of no coffee...
Sir I am extremely thankfull to you because I was striving for basic concepts.. and I hope that your text will help me in modifying my concpets... again thanks very much
GOD bless you
Thakyou brother for your kind help
I appriciate
Always a pleasure.
...it was early and I was full of no coffee...
hi there,
if it was a polynomial fuction such as, y= mx^2 - nx + b, what would be the variable cost in this case?
Fixed cost =b
Variable cost = (mx^2 - nx ) or (mx - n)x
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