Answer:
The variation needed for the daily buget to follow the increase in production for the first year is 12.38 $/year.
This value of Δy is not constant for a constant increase in production.
Step-by-step explanation:
We know that the production function is , and in the current situation
and
.
With this information we can calculate the actual budget level:
The next year, with an increase in demand of 100 more automobiles, the production will be .
If we calculate y for this new situation, we have:
The budget for the following year is 130.
The variation needed for the daily buget to follow the increase in production for the first year is 12.38 $/year.
This value of Δy is not constant for a constant increase in production.