Welcome to Westonci.ca, where finding answers to your questions is made simple by our community of experts. Our platform provides a seamless experience for finding reliable answers from a network of experienced professionals. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform.
Sagot :
The minimum production cost of company 2 is greater than the minimum production cost of company 1. We arrived at this value by comparing the production cost of both companies.
What is meant by minimum production cost?
The overall cost incurred by a company to manufacture a product or provide services is known as the cost of production.
The objective of every company is to keep this cost at minimum, hence the minimum production cost.
How do find minimum Production Cost?
Recall that the production function is given as:
f(x) = 0.25x² - 8x + 600
Inserting the values given by the schedule we have
- f(6) = 0.25(6²) - 8(6) + 600 = 561
- f(8) = 0.25(8²) - 8(8) + 600 = 552
- f(10) = 0.25(10²) - 8(10) + 600 = 545
- f(12) = 0.25(12²) - 8(12) + 600 = 540
- f(14) = 0.25(14²) - 8(14) + 600 = 537
For company 2, we are given the various production costs as;
x - g(x)
6 - 862.2
8 - 856.8
10 - 855
12 - 856.8
14 - 862.2
Juxtaposing the above, we can infer that the minimum production cost of company 2 is greater than the minimum production cost of company 1.
Learn more about minimum production cost at:
https://brainly.com/question/9871118
#SPJ1
We appreciate your time on our site. Don't hesitate to return whenever you have more questions or need further clarification. We hope our answers were useful. Return anytime for more information and answers to any other questions you have. Get the answers you need at Westonci.ca. Stay informed by returning for our latest expert advice.