a. it is linear, b. when the machine is not producing parts the cost is $200, c. cost of producing each part is $4 (i.e., variable cost is $4 per part). Suppose the cost function for machine B has the following characteristics: a. it is linear, b. when the machine is not producing parts the cost is $270, c. cost of producing each part is $3 (i.e., variable cost is $3 per part). A. Find the cost equations for machine A
4. Suppose the cost function for machine A has the following characteristics:
a. it is linear,
b. when the machine is not producing parts the cost is $200,
c. cost of producing each part is $4 (i.e., variable cost is $4 per part).
Suppose the cost function for machine B has the following characteristics:
a. it is linear,
b. when the machine is not producing parts the cost is $270,
c. cost of producing each part is $3 (i.e., variable cost is $3 per part).
A. Find the cost equations for machine A; place in function form.
Define your variables
B. Find the cost equations for machine B; place in function form.
Define your variables (use variables that are different than variables used in Part A)
C. Determine the break even point.
(Determine this algebraically, not graphically; be sure to show your work.)
D. Provide a graph of these two cost functions.
Label the 1. Axes, 2. Break even point as an ordered pair, and 3. The two functions.
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