Answer:
Cost function = 40a + 500
Cost of 90 articles = $4,100
Step-by-step explanation:
The fixed cost is $500 and it will.not change regardless of production level.
The Variable cost is $40 and increases by every additional unit produced.
Assume the number of articles produced is a.
Cost function would be:
Total cost = Variable cost * Number of articles + Fixed cost
TC = 40a + 500
Using this, the cost of 90 articles is:
= 40 * 90 + 500
= $4,100
