Ask Question
16 December, 15:16

A factory has a linear cost function

. where b represents fixed costs and a represents the labor and material costs of making one item, both in thousands of dollars. If property taxes (part of the fixed costs) are increased by $28,000 per year, what effect does this have on the graph of the cost function?

+5
Answers (2)
  1. 16 December, 18:01
    0
    A factory has a linear cost function, where b represents fixed costs and a represents the labor and material costs of making one item. So

    y = ax + b, where y is total cost n x is no. of items

    property tax is part of b so its increase will add 28 to b, the new cost function becomes:

    y' = ax + b' where b' = b + 28

    the line graph moves up by 28 in the y-direction
  2. 16 December, 18:42
    0
    Cost function, f (x) = ax + b

    If b goes up by 28 (thousands of dollars), the graph of cost function will move up by 28 in y.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “A factory has a linear cost function . where b represents fixed costs and a represents the labor and material costs of making one item, ...” in 📙 Mathematics if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers