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Lisa [10]
1 year ago
15

Of the following three statements, choose the best option and write a viable argument showing how it is reflected by the cost fu

nction for wichita's factory
Mathematics
1 answer:
Elina [12.6K]1 year ago
7 0

A viable argument showing how it is reflected by the Cost Function for Wichita’s factory is; The cost of production per unit of item produced is 1$ as long as total units produced is less than 2500. If more than 2500 units are produced than the cost per unit actually comes down to 0.8$per unit.

<h3>How to Interpret Cost Functions?</h3>

From the given options, the best statement is;

The plant’s production processes are performed primarily by robots that are able to work longer hours, when needed, at no additional cost.

A cost function is a formula used to predict the cost that will be experienced at a certain activity level. Thus, the cost function for the best option is;

The cost of production per unit of item produced is 1$ as long as total units produced is less than 2500. If more than 2500 units are produced than the cost per unit actually comes down to 0.8$per unit.

The missing options are;

___ The electricity contract with the utility company is structured so that higher daily energy usage is charged at a lower rate.

___ The plant’s production processes are performed primarily by robots that are able to work longer hours, when needed, at no additional cost.

___ Overtime wages were required to produce at levels above 25,000 units.

Read more about Cost Functions at; brainly.com/question/14038368

#SPJ1

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