Try the fastest way to create flashcards
Question

The manager of a restaurant found that the cost to produce 100100 cups of coffee is $11.02\$11.02, while the cost to produce 400400 cups is $40.12\$40.12. Assume the cost is a linear function of xx, the number of cups produced. a.a. Find a formula for C(x)C(x). b.b. What is the fixed cost? c.c. Find the total cost of producing 10001000 cups. d.d. Find the total cost of producing 10011001 cups. e.e. Find the marginal cost of the 10011001st cup. f.f. What is the marginal cost of any cup and what does this mean to the manager?

Solution

Verified
Answered 3 months ago
Answered 3 months ago
Step 1
1 of 2

Assume that cost function has form: C(x)=ax+bC(x) = ax+b
To produce 100 cups, cost is $11.02\$11.02. If we put it in the cost function we have:

11.02=100a+b11.02=100a+b

To produce 400 cups, cost is $40.12\$40.12. If we put it in the cost function we have:

40.12=400a+b40.12=400a +b

So we need to solve a linear system:

11.02=100a+b40.12=400a+b\begin{gather*} 11.02 = 100a+b \\ 40.12 =400a+b \\ \end{gather*}

Let's subtract second from the first equation:

29.1=300aa=29.1300=0.097\begin{gather*} -29.1=-300a \\ \\ a = \dfrac{-29.1}{-300} = 0.097 \end{gather*}

b=11.02100a=11.021000.097=1.32\begin{gather*} b = 11.02 -100a = 11.02 -100 \cdot 0.097 = 1.32 \end{gather*}

So the cost function is

C(x)=0.097x+1.32\boxed{C(x) = 0.097x + 1.32}

Create a free account to view solutions

Create a free account to view solutions

Recommended textbook solutions

Thomas' Calculus 14th Edition by Christopher E Heil, Joel R. Hass, Maurice D. Weir

Thomas' Calculus

14th EditionISBN: 9780134438986 (11 more)Christopher E Heil, Joel R. Hass, Maurice D. Weir
10,142 solutions
Calculus with Applications 11th Edition by Margaret L. Lial, Nathan P. Ritchey, Raymond N. Greenwell

Calculus with Applications

11th EditionISBN: 9780321979421Margaret L. Lial, Nathan P. Ritchey, Raymond N. Greenwell
4,840 solutions
Calculus: Early Transcendentals 8th Edition by James Stewart

Calculus: Early Transcendentals

8th EditionISBN: 9781285741550 (5 more)James Stewart
11,084 solutions
Calculus: Early Transcendentals 9th Edition by Daniel K. Clegg, James Stewart, Saleem Watson

Calculus: Early Transcendentals

9th EditionISBN: 9781337613927Daniel K. Clegg, James Stewart, Saleem Watson
11,050 solutions

More related questions

1/4

1/7