Calculus with Applications (10th Edition)

Published by Pearson
ISBN 10: 0321749006
ISBN 13: 978-0-32174-900-0

Chapter 1 - Linear Functions - 1.2 Linear Functions and Applications - 1.2 Exercises: 26

Answer

$C(x)=120x+12,500$

Work Step by Step

Assuming a linear cost function, $C(x)=mx+b$, where m represents the marginal cost and b represents the fixed cost. Here, $b$= $?$(fixed cost) and $m$= $\$ 120$ (the cost to produce one item). $C(x)=120x+b$ Now, $C(x)=96,500$ when $x=700$. We don't know $b$, but we were given $C(700)=96,500$, so we solve (for $b$): $120(700)+b=96, 500$ $84,000+b=96, 500$ $b=12, 500$ $C(x)=120x+12,500$
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