Suppose That the Cost Function for Producing a Certain Item

question 23

Multiple Choice

Suppose that the cost function for producing a certain item is given by C ( n ) = 3 n + 4 where n represents the number of items produced. Find C (150) , C (570) , C (770) , C (1,580) .

• A) C (150) = 474, C (570) = 1,734, C (770) = 2,334, C (1,580) = 4,764
• B) C (150) = 464, C (570) = 1,724, C (770) = 2,324, C (1,580) = 4,754
• C) C (150) = 484, C (570) = 1,744, C (770) = 2,344, C (1,580) = 4,774
• D) C (150) = 454, C (570) = 1,714, C (770) = 2,314, C (1,580) = 4,744

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Definitions:

Book Value

The value of an asset as it appears on a balance sheet, calculated by subtracting any associated depreciation or amortization from its original cost.

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was put into service, reducing its book value on the balance sheet.

Machinery

Equipment or devices that perform specific tasks, often used in production and manufacturing processes.

Cash

A form of currency that includes coins and paper notes, used as a medium of exchange for goods and services.