Cost and revenue functions for a certain chemical manufacturer are given in the following figure. How much does it cost to produce 10 tons?
A)$4,500
B)$3,200
C)$4.50
D)$3.20

Question

Cost and revenue functions for a certain chemical manufacturer are given in the following figure. How much does it cost to produce 10 tons? 
A)$4,500 
B)$3,200 
C)$4.50 
D)$3.20

Quizplus · Accepted Answer

From the graph, we can see that the cost function intersects the y-axis at $4,500. This means that when the manufacturer produces 0 tons, they still have to pay this fixed cost. Therefore, to produce 10 tons, the total cost would be $4,500 + variable cost for producing 10 tons, which can be read from the graph as approximately $0. If we add these up, we get $4,500, which is the total cost of producing 10 tons.

Cost and Revenue Functions for a Certain Chemical Manufacturer Are