Question

It has been determined that the cost of producing x units of a certain item is (10x + 630). The demand function is given by (p = D(x) = 51 - 0.2x). What is the cost function for producing x units of the item?

A. (10x + 630)
B. (51x - 0.2)
C. (10x - 630)
D. (51 + 0.2x)

Answer 1

The cost function for producing x units of an item is (10x + 630), which represents the total cost including both variable and fixed costs and is separate from the demand function (p = D(x) = 51 - 0.2x). The correct answer is A. (10x + 630).

Step-by-step explanation:

The cost function for producing x units of the item is given as (10x + 630). This cost function includes both variable costs and fixed costs associated with production. The variable cost is represented by the 10x term, where x is the number of units produced, and this cost increases with each additional unit. The fixed cost is the 630, which remains constant regardless of the quantity produced. It's important to differentiate this from the demand function, which is (p = D(x) = 51 - 0.2x) and represents the relationship between the quantity demanded and the price at which that quantity is demanded. Thus, the correct answer is A. (10x + 630).