Question

If the fixed cost of manufacturing a product is ETB 10, 000 and the marginal cost at Q units of output is ETB(60+2.5Q). Find: 

a. The function for the total cost of manufacturing x units.

 b. The total cost of 200 units.  

Answer 1

a. The function for the total cost of manufacturing x units.

$TC=\intop60+2.5Q$

$TC=1.25Q^2+60Q$

b. The total cost of 200 units.  

$=1.25(200)^2+60(200)$

$=62,000$