Problem

Economics—Cost Function: The Fontana Vitamin Company determines that the cost in dollars o...

Economics—Cost Function: The Fontana Vitamin Company determines that the cost in dollars of producing x bottles of a new supplement is given by the linear cost function

C (x) = 1.25x + 550

(a) What are the fixed and variable costs for producing the supplement?


(b) Evaluate C(70), and interpret.


(c) How many bottles of the supplement can be produced for $693.75?


(d) What is the marginal cost for the supplement?


(e) If the current production level is 70 bottles, what is the cost of producing the 71st bottle of the supplement?

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