For manufacturing a certain item, the fixed cost is ₹6000 and the cost of producing each unit is ₹20. What is the cost function?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → $C(x)=6000+20x$
Total fixed cost = ₹6000,
variable cost of producing one unit = ₹20
∴ Total cost, $TC = ₹(6000+ 20x)$, where x is the number of units produced.