Question

a company manufactures potato guns. the fixed cost of producing potato guns is $20 and the variable cost of producing a single potato gun is $2. if x is the quantity of potato guns produced, what is the cost function for the company?

Answer 1

Answer: 2x + 20

Step-by-step explanation:

Hence the fix cost will remain constant irrespective of the level of the production. The point here is the it will remain same.

The variable cost is the one which we require for every additional unit of production. here for one unit it will be 2 for 2 units it will be 2 multiply by 2 and for x units it will be 2x.

The total cost equals Fixed cost + variable cost

so our equation will be 2x + 20.