The daily production cost c (in €) of a certain firm is given by c = 0.891 +1.25q2 + 4000, where 91 and 92 denote the quantities produced of a first and second product. At this moment the daily production cost is €50 000.
The daily production cost c (in €) of a certain firm is given by c = 0.891 +1.25q2 + 4000, where 91 and 92 denote the quantities produced of a first and second product. At this moment the daily production cost is €50 000.
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![27. The daily production cost c (in €) of a certain firm is given by c = 0.8q1 + 1.25q2 + 4000, where
91 and 92 denote the quantities produced of a first and second product. At this moment the daily
production cost is €50 000.
(a) Give the economic name and meaning of the number 0.8 in this equation.
(b) Describe the graph of the function in detail.
(c) Represent all possibilities for the production levels at this moment geometrically.
(d) What is the name used in mathematics for the object that you have drawn in the previous
question?
Now assume for this and for later parts that the amount produced of product 1 is 31.25% more than
the amount produced of product 2.
(e) How many units of both products are produced? Indicate these production levels in the diagram
from part c.
(f) Assume that you produce one unit less of the first product. What you gain in production cost
can be used to produce more of the second product. How many additional units of the second
product can be produced?
(g) Which relation is there between the answers to the questions c and f?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc4828685-f295-4ed3-b439-7707c3cf84fb%2Fe854ac29-aad6-471b-91ef-4f0650af0fc4%2Ftcybadq_processed.png&w=3840&q=75)
Transcribed Image Text:27. The daily production cost c (in €) of a certain firm is given by c = 0.8q1 + 1.25q2 + 4000, where
91 and 92 denote the quantities produced of a first and second product. At this moment the daily
production cost is €50 000.
(a) Give the economic name and meaning of the number 0.8 in this equation.
(b) Describe the graph of the function in detail.
(c) Represent all possibilities for the production levels at this moment geometrically.
(d) What is the name used in mathematics for the object that you have drawn in the previous
question?
Now assume for this and for later parts that the amount produced of product 1 is 31.25% more than
the amount produced of product 2.
(e) How many units of both products are produced? Indicate these production levels in the diagram
from part c.
(f) Assume that you produce one unit less of the first product. What you gain in production cost
can be used to produce more of the second product. How many additional units of the second
product can be produced?
(g) Which relation is there between the answers to the questions c and f?
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