The total cost c (q) of producing q goods is given by: c (q) = 0.01q3-0.6q2+14q what is the fixed cost?

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Business

Carly Mcknight

11 January, 13:11

The total cost c (q) of producing q goods is given by: c (q) = 0.01q3-0.6q2+14q what is the fixed cost?

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Elijah Hanna · Answer 1

We have that the fixed cost is in general the cost that happens when one produces products that is irrespective of the number of products produced. This can encompass various costs like rent of the factory and some standard machine check-up costs. In this equation, we have no standard costs; when 0 prodcuts are produced, the cost is 0 (it is a polynomial with a 0 constant term). Thus, we get that the fixed costs are 0.