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    rgmba's Avatar
    rgmba Posts: 2, Reputation: 1
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    #1

    Apr 24, 2010, 11:24 AM
    linear cost function equation
    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's Avatar
    galactus Posts: 2,271, Reputation: 282
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    #2

    Apr 24, 2010, 11:41 AM

    It is just a line equation

    Use y=mx+b to find the equation

    Remember that

    Let x be the tons and y be the cost.



    Then, use either set of points in y=mx+b, along with the slope, to find b. You're done.
    rgmba's Avatar
    rgmba Posts: 2, Reputation: 1
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    #3

    Apr 24, 2010, 12:36 PM

    Thank you very much

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