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The total cost (in dollars) of producing x college textbooks is C(x)=46x+88,000

The total cost (in dollars) of producing x college textbooks is C(x)=46x+88,000-example-1
User Bmello
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1 Answer

6 votes

we have the linear equation

C(x)=46x+88,000

This is a linear equation in slope-intercept form

where

the slope or average rate is m=$46 per college textbook

and

the initial value is b=$88,000

therefore

Part A

the fixed cost is the same that the initial value (value of C(x) when the value of x=0)

so

Fixed cost=$88,000

Part B

the marginal cost per book is the same that the slope

so

the marginal cost per book is $46 per college textbook

Part C

For x=800

C(x)=46(800)+88,000=$124,800

For x=31,000

C(x)=46(31,000)+88,000=$1,514,000

Part D

To find out the average cost you need to average total costs over the number of units produce

so

For x=800 books

average cost=124,800/800=$156

For x=31,000 books

average cost=1,514,000/31,000=$48.84

User Hagner
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