Write a Cost Function for the Problem $C(x)=16600+70 x ; R(x)=155 x$

question 69

Multiple Choice

Write a cost function for the problem. Assume that the relationship is linear.
-A toilet manufacturer has decided to come out with a new and improved toilet. The fixed cost for the production of this new toilet line is $16,600 and the variable costs are $70 per toilet. The Company expects to sell the toilets for $155. Formulate a function C(x) for the total cost of Producing x new toilets and a function R(x) for the total revenue generated from the sales of x
Toilets.

• A) \( C(x)=16600+70 x ; R(x)=155 x \)
• B) \( C(x)=16,670 ; R(x)=155 \)
• C) \( C(x)=70 x: R(x)=155 x \)
• D) \( C(x)=16600+155 x: R(x)=70 x \)

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Definitions:

Economic Profit

The variance between a company's overall income and its opportunity expenses, covering both direct and indirect costs.

Perfectly Competitive

A market structure where many firms offer goods or services that are similar, allowing for free entry and exit of firms.

Short Run

A period in economics during which at least one input is fixed and cannot be adjusted by a firm.

Economic Profit

The total revenue of a business minus its explicit and implicit costs, showing the actual financial gain.