A Linear Cost Function Is , Where X Represents

question 70

Multiple Choice

A linear cost function is , where x represents the number of units produced. If 60 units are currently produced, determine the marginal cost. ​
​

• A) $225
• B) $235​
• C) $835
• D) ​$60
• E) $10

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Definitions:

Fixed Costs

Expenses that do not change with the level of production or sales activities, such as rent, salaries, and insurance.

Net Income

The company's net income following the deduction of all expenses and taxes from its total revenue.

Variable Costs

Expenses that fluctuate in proportion to the level of output or activity, such as raw materials and direct labor costs.

Fixed Costs

Expenditures that do not vary with the degree of output or sales, for instance, rental fees, wages, and insurance premiums.