#### Question

Create a line graph for an industry with economies of scale to show how much it costs to produce each given amount of a product. Suppose it costs $20,000 to set up and furnish a new restaurant. The cost for each meal the restaurant serves is$8. Use your math skills and the information above to answer the following questions: What is the cost per meal to produce ten meals? Fifty meals? One hundred meals? One thousand meals?

#### Solution

Verified

\begin{align*} \text{Cost of setting up restaurant}&= \20000 \\ \text{n=number of meals}\\ \text{Cost for each n meals}&=\ 8*n \\ \text{Cost per meal to produce n meals}&= \frac{20000+(n*8)}{n}\\ \\ \\\text{n=10}\\ \text{Cost per meal to produce n meals}&= \frac{20000+(10*8)}{10}\\ &=\2008 \\ \\ \\\\\text{n=50}\\ \text{Cost per meal to produce n meals}&= \frac{20000+(50*8)}{50}\\ \\ &=\408 \\ \\ \\\\\text{n=100}\\ \text{Cost per meal to produce n meals}&= \frac{20000+(100*8)}{100}\\ \\ &=\208\\ \\\\\text{n=1000}\\ \text{Cost per meal to produce n meals}&= \frac{20000+(1000*8)}{1000}\\ &=\28\\ \end{align*}

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