Cobb-Douglas Production Function | Formula, Equation & Example

Cost Function The simplest cost function is the linear cost function, C(x)=m x b, where the y -intercept b represents the fixed costs of operating a business and the slope m represents the cost of each item produced. Suppose that a small bicycle manufacturer has daily fixed costs of 1800, and each bicycle costs 90 dollars to manufacture. (a) Write a linear model that expresses the cost C of manufacturing x bicycles in a day. (b) Graph the model. (c) What is the cost of manufacturing 14 bicycles

SOLVED: Cost Function: The simplest cost function is the linear cost function C(x) = mx b, where the y-intercept represents the fixed cost of operating a business and the slope m represents the variable costs. Suppose that a small bicycle manufacturer has daily fixed costs of 1500 and each bicycle costs550 to manufacture.Write a linear function that expresses the cost of manufacturing bicycles in a day:C(x) = 550x 1500

Definition of cost function