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OpenStudy (anonymous):
Assume that each situation can be expressed as a linear cost function. find the cost function. Fixed cost: $40; 8 items cost $1600 to produce.
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OpenStudy (anonymous):
Fixed costs are costs that are there no matter how much you produce, so it is a constant in the equation. If you have a total cost ($1600) and you take away the fixed cost ($40) then you can find out how much it is to produce one item (($1600-$40)/8). does this help?
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