Answer to Question #173745 in Economics for M Sulemn

Question

A firm buys a raw material that costs £220 a tonne for the first 40 tonnes, £180

a tonne for the next 40 tonnes and £150 for any further quantities. Write an

expression for the firm’s total expenditure on this input in terms of the total amount

used (which can be assumed to be greater than 80 tonnes), and simplify.

Answer 1

$$220\times40+180\times40+150\times(q-80)$$

$$8800+7200+150q-12000$$

$$150q+4000$$