Question

The slope of a curve is defined as the upper delta upper yδy divided by the upper delta upper xδx . ​(assume the y values are on the vertical axis and the x values are on the horizontal​ axis) suppose your business operates a machine at a cost of ​$250250 per day whether it is used or not plus ​$5050 for each hour it is used. use the line drawing tool to draw the daily cost curve for this machine assuming an 8 hour day. label the curve​ 'cost'.

Answer 1

Explanation:

The cost function for this industry is given by,

$TC = FC + VC*Q$

$TC = 250 + 50(Number of hours used)$

When it is used for full 8 hours, total cost is

$TC= 250 + 50(8) = 250 + 400 = 650$

When it is used for 7 hours, TC is $600.

When it is used for 6 hours, TC is $550

When it is used for 5 hours, TC is $500.

When it is used for 4 hours, TC is $450.

When it is used for 3 hours, TC is $400.

When it is used for 2 hours, TC is $350.

When it is used for 1 hours, TC is $300.

When it is used for 0 hours, TC is $250.

Thus, the cost curve will look like the diagram given below.