Answer:
20 represent the cost per variable inputs
Step-by-step explanation:
C(x) = 20(4x) + 500
Total cost is the addition of variable cost and fixed cost
Fixed cost are cost that do not change during the production process such as machinery, furnitures and fittings.
Variable cost are cost of production that changes with production process such as cost of labor, cost of raw materials.
C(x) = 20(4x) + 500
C(x) represent the total cost
20(4x) represent the variable cost
500 represent the fixed cost
From the variable cost 20(4x)
20 represent the cost per variable inputs
