a firm produces 50 units of a product for 320rs and 80 units for 380 rs . considering the cost curve to be a straight -line the cost of producing 110 units to be estimated as ?
1 Replies
sylvester joy gomes
(ipcc student)
(24 Points)
Replied 25 January 2011
( x = variable cost , y = fixed cost )
when the firm is producing 50 units the equation is :
50x + y = 320
when the firm is producing 80 units the equation is :
80x + y =380
solving the equation x=2 , y=220
therefore when the firm is producing 110 units the equation is :
110x + y
=110(2) + 220
=220 + 220
=440 Ans
not very goog in maths hope this helps .
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