Question

A factory has a linear cost function
. where b represents fixed costs and a represents the labor and material costs of making one item, both in thousands of dollars. If property taxes (part of the fixed costs) are increased by $28,000 per year, what effect does this have on the graph of the cost function?

Answer 1

A factory has a linear cost function, where b represents fixed costs and a represents the labor and material costs of making one item. So
y = ax + b, where y is total cost n x is no. of items

property tax is part of b so its increase will add 28 to b, the new cost function becomes:
y' = ax + b' where b' = b + 28

the line graph moves up by 28 in the y-direction

Answer 2

The equation will be y = ax + b + 28,000. Then the line graph moves up by 28,000 in the y-direction.

What is the equation of line?

The equation of line is given as

y = ax + b

Where a be the labor and material costs of making one item and b is the fixed costs.

If property taxes (part of the fixed costs) are increased by $28,000 per year.

Then the equation will be

y = ax + b', where b' = b + 28,000

The line graph moves up by 28,000 in the y-direction.

More about the equation of line link is given below.

https://brainly.com/question/21511618

#SPJ2