Answer to Question #233144 in Microeconomics for Clement Paul

Question

he fisherman has a fixed cost of Rs.10 (his rod). The variable cost of his time is Rs.5 per hour. Graph the fisherman's total-cost curve. Is this cost function exhibits the concepts of economic cost theory? If not, then why not?

Answer 1

total cost = total fixed cost + total variable cost 

As given Fixed cost = 10 and variable cost = 5 per hour 

so total cost = 10 + 5x   where x is unit of time.

Yes this cost function exhibit the concept of economic cost theory. The cost function represent  combination of losses of any goods.