Question

Explain what each of the following represents in the context of a dairy farmer's cost function:

a) h(18)
b) h(b) = 25
c) h(15) - h(9)
d) h(4.3) + h(3)

Answer 1

In a dairy farmer's cost function, h(18) represents the cost to produce 18 units, h(b) = 25 shows a cost of 25 for b units, h(15) - h(9) indicates the cost difference between producing 15 and 9 units, and h(4.3) + h(3) is the total cost of producing 4.3 and 3 units separately.

Step-by-step explanation:

In the context of a dairy farmer's cost function, the terms given would represent the following:

• h(18): This represents the cost for the farmer to produce 18 units of dairy product.
• h(b) = 25: This means that for b units of dairy product produced, the cost is 25.
• h(15) - h(9): This represents the change in cost when increasing production from 9 units to 15 units. It's the additional cost incurred for producing 6 more units of dairy product.
• h(4.3) + h(3): This is the total cost of producing 4.3 units plus the cost of producing 3 units of dairy product.

Assuming h represents the cost function for dairy production, variations in the function's input (like 18, b, 15, 9, etc.) represent different production quantities and the corresponding output represents the costs associated with those production levels.