Answer:
a) y = 10x +500
b) $500
c) $15 for 100; $10.50 for 1000
Step-by-step explanation:
a)
We assume the given "cost per unit" is the variable cost per unit. The total cost (y) for x units, given some fixed cost (b), is ...
y = 10x +b
For 100 units, this is ...
1500 = 10(100) +b
500 = b . . . . . . . . subtract 1000
The cost function rule is ...
y = 10x +500
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b)
The fixed cost is the cost of producing 0 units:
y = 10(0) +500
y = 500 . . . . . . . the fixed cost in dollars
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c)
The average cost (ac) of producing n units is the total cost divided by n:
ac(n) = (10n +500)/n = 10 +500/n
The average cost for 100 units is
ac(100) = 10 +500/100 = 15 . . . average dollar cost for 100 units
The average cost for 1000 units is ...
ac(1000) = 10 +500/1000 = 10.50 . . . average dollar cost for 1000 units
