The following table gives the cost, C(n)C(n), of producing a certain good as a linear function of nn, the number of units produced. Use the information in this table to answer the questions that follow it. nn (units) 75 100 125 150 C(n)C(n) (dollars) 10000 10125 10250 10375 (a) Evaluate each of the following expressions. Give economic interpretations of each. C(150)=C(150)= , which tells us C(150)−C(100)=C(150)−C(100)= , which tells us
The following table gives the cost, C(n)C(n), of producing a certain good as a linear function of nn, the number of units produced. Use the information in this table to answer the questions that follow it.
| nn (units) | 75 | 100 | 125 | 150 |
| C(n)C(n) (dollars) | 10000 | 10125 | 10250 | 10375 |
(a) Evaluate each of the following expressions. Give economic interpretations of each.
C(150)=C(150)= , which tells us
C(150)−C(100)=C(150)−C(100)= , which tells us
C(150)−C(100)150−100=C(150)−C(100)150−100= , which tells us
(b)Estimate C(0)C(0).
What is the economic significance of this value?
(c)The fixed cost of production is the cost incurred before any goods are produced. The unit cost is the cost of producing an additional unit. Find a formula for C(n)C(n) in terms of nn, given that:
C(n)=
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