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10 March, 04:41

Suppose that the total cost of making and selling x widgets is C = 32x + 560 dollars. What is the meaning of the slope in this case?

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  1. 10 March, 07:25
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    Slope = 32 Slope indicates the variable cost per unit.

    Step-by-step explanation:

    As we know that

    Total cost is the summation pf fixed cost and variable cost.

    Lets take fixed cost = F

    Variable cost V=x v

    v is the variable cost per unit.

    Total cost = F + V

    TC = F + x v

    The slope of total cost line is variable cost per unit.

    Given that

    C = 32x + 560

    So from above we can say that

    F = 560

    V = 32 x

    Slope = 32 Slope indicates the variable cost per unit.
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