A firm produces 50 units of a product for rs 320 and 80 units for rs 380 Considering the - Maths - Mathematical Reasoning

Question

A firm produces 50 units of a product for rs 320 and 80 units for
rs 380 Considering the cost curve to be a straight-line the cost of
producing 110 units to be estimated as

Lovina Kansal · Accepted Answer

Dear student
Since the cost curve is a straight line we consider cost curve as y=Ax+Bwhere y is total cost
Now, for x=50,y=320∴320=50A+B      
(1)and for x=80 and y=380∴380=80A+B       
(2)Subtract (1) from (2), we get60=30AA=2 and B=220Thus, equation of cost line is y=2x+220For x=110, y=440So, cost of product is Rs440
Regards

A firm produces 50 units of a product for rs.320 and 80 units for rs.380. Considering the cost curve to be a straight-line the cost of producing 110 units to be estimated as